Theater Chain Cinemark Raising $250 Million In Debt Sale
The nation’s third largest exhibitor, Cinemark, mentioned Monday it’s promoting $250 million value of debt securities – senior secured notes – and can use the online proceeds of the proposed providing for basic company functions, together with additional growing its liquidity.
Chains are in an enormous money crunch as film theaters stay closed since mid-March as a result of coronavirus pandemic. Some within the business, like AMC Leisure CEO Adam Aron, have mentioned they hope and anticipate theaters will reopen in June however that prospect is way from sure. Cinemark’s CEO together with Aron of AMC usually are not taking salaries as workers are furloughed as the businesses hunker right down to attempt to climate the shutdown financially.
Cinemark mentioned the notes will likely be assured by sure firm subsidiaries, “The Notes and the ensures would be the firm’s and the guarantors’ senior obligations secured by a first-priority lien on sure of the corporate’s leasehold pursuits in actual property.” The notes are due in 2025.
Plano, Texas-based Cinemark operates below the Cinemark, Century, Tinseltown and Rave names with 554 theatres and 6,132 screens in 42 states domestically and 15 international locations in South and Central America.
In a letter to shareholders within the proxy, Zoradi acknowledged “the social and financial results of COVID-19, that are widespread and hard-hitting. Everybody continues to battle via this uncertainty, together with Cinemark.” With theater shuttered, he mentioned, “We’re taking prudent steps to face up to the financial impression of our short-term closures throughout this pandemic. Our precedence as we navigate this uncharted territory is to make sure that Cinemark will have the ability to open its theatres and make use of our international staff members when this pandemic subsides.”