Cineworld Group (CINE ), the UK’s largest cinema exhibitor chain, announced that it has secured $200m of incremental loans maturing in May 2024 from a ring of existing lenders.
Addressing shareholders, the London-listed company said it remains excited about the “unprecedented slate of films” in the second half of 2021, particular in the fourth quarter.
"The additional liquidity announced today provides the Group with significant operating flexibility now that cinemas have opened across the world,” said CEO, Mooky Greidinger.
The firm said it had also amended covenants on existing debt facilities in order to improve its financial position which will further support the Group as cinemas restart trading.
This will include reducing the minimum liquidity requirement and relaxing limitations on the use of cash, among other modifications, following the impact of COVID-19 on the industry.
“We are monitoring the evolution of the virus and its potential impact on our business,” it said.
Shares in Cineworld Group were trading 3.05% lower during Friday morning trading at 64.7p.
In March 2021, Cineworld raised a $213m convertible bond and later in May, the group received a $203m refund as part of the US CARES Act. The Group said that this, together with the further liquidity from the incremental loans and with tight control over cash usage, will provide it with the flexibility and resilience to execute on its business strategy.
‘Since cinemas started reopening in April 2021, trading has continued to improve, and the Group is now well-positioned to benefit from pent-up customer demand and the exceptionally strong film slate through the second half of 2021,’ the Company noted.
Greidinger added, “We remain confident in the prospects for our business and continue to look forward to welcoming our customers back to the best place to watch a movie." The Group said it expects to release its 2021 half-year results next month on 12 August 2021.
Follow News & Updates from Cineworld Group here: