 confirmed on Friday that it will receive £143m in loans to help secure its finances as the FTSE 250 looks ahead.){kind=link}
The loan provides ‘operating flexibility‘ says Cineworld CEO
Cineworld (LON:CINE) confirmed on Friday that it will receive £143m in loans to help secure its finances as the company looks ahead to a busy period of film releases for the remainder of 2021.
The FTSE 250 company’s loan was agreed with already existing lenders and will mature in May 2024.
The cinema chain also said it 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 that will provide further support as its cinemas restart trading.
It is the most recent portion of fundraising after Cineworld secured $203m via the US CARES Act in May and raised $213m though a convertible bond in March.
Cineworld said these measures will boost its balance sheet as it recovers from the impact of repeated closures during lockdown.
Cineworld said that its trading has continued to improve as its cinemas began reopening in April.
“The additional liquidity announced today provides the group with significant operating flexibility now that cinemas have opened across the world,” said chief executive Mooky Greidinger.
“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.”
The Cineworld share price is down by 1.17% during the morning session on Friday.