The new debt facility "further strengthens the group’s balance sheet as cinemas begin to re-open around the world," the exhibition giant said.
Regal owner Cineworld, the second-largest cinema chain in the world behind AMC Theatres, has further boosted its liquidity as it gears up for a reopening of its movie theaters next month.
Early on Monday, Cineworld, the largest operator in the U.K., where is also owns the Picturehouse cinema chain, said it has agreed with a group of private institutional investors on the terms of a new $250 million secured debt facility that matures in 2023.
"This, together with the [debt] covenant amendments and revolving credit facility increase of $110 million announced on May 28, further strengthens the group’s balance sheet as cinemas begin to re-open around the world," the exhibition giant said. "With the easing of lockdown restrictions in key jurisdictions, Cineworld is excited to welcome customers back to cinemas and enjoy the best place to watch a movie."
Earlier this year, after the novel coronavirus pandemic shuttered cinemas, Cineworld had warned that it may go under in the case of a prolonged period of closures. "Of course, it's not been an easy time," Cineworld CEO Moshe Greidinger told THR recently. "It’s very complicated to have such a huge operation that really shuts down, with zero income. But we're in a good way. And we're getting out of this now. And if we need credit we can get it. Cineworld is in a good shape."
