Cineworld Group PLC (LSE:CINE) secured US$200mln of incremental loans from existing lenders that it said will help maintain “financial and operational flexibility” as cinemas reopen following Coronavirus (COVID-19) lockdowns.
The movie theatre chain said it also agreed amendments to covenants on some of its existing debt facilities, including reducing the minimum liquidity requirement and relaxing limitations on the use of cash, as well as other modifications will provide further support as its cinemas restart trading.
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The additional loans will add to a US CARES Act refund of US$203mln received in May and a US$213mln convertible bond raised in March.
The group added that its cinemas had started reopening in April and that trading has “continued to improve”. As a result, Cineworld said it is “now well-positioned to benefit from pent-up customer demand and the exceptionally strong film slate through the second half of 2021”.
"The additional liquidity announced today provides the group with significant operating flexibility now that cinemas have opened across the world. We are monitoring the evolution of the virus and its potential impact on our business, but we are very excited about the potential of the unprecedented slate of films in the second half of 2021 (mainly in the fourth quarter). 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", Cineworld chief executive Mooky Greidinger said in a statement.