TORONTO, Feb. 8, 2021 /CNW/ - Cineplex Inc. ("Cineplex" or
the "Company") (TSX: CGX) announced today that it has entered into
a third amendment (the "Third Amendment") to the seventh amended
and restated credit agreement with its lenders. The Third Amendment
provides for, among other things, the continued suspension of
financial covenant testing until the fourth quarter of 2021 upon
certain conditions being met, including completion of a minimum
$200 million financing by the Company
of second lien secured notes on or prior to March 31, 2021 with a maturity of at least five
years. Pursuant to the terms of the Third Amendment, the net
proceeds received from such offering of second lien secured notes
must be used to repay indebtedness under the Company's credit
facilities, of which $100 million
would constitute a permanent repayment.
Cineplex also announced today that it has entered into an
engagement letter with BMO Capital Markets and Scotiabank in
connection with a proposed private placement offering (the "Note
Offering") of second lien secured notes (the "Notes"),
following the release of its Fourth Quarter and Year End 2020
results on Thursday, February 11,
2021 and subject to market and other conditions. Cineplex
intends to use the net proceeds from the proposed Note Offering, if
completed, to repay indebtedness under its credit facilities and
provide incremental liquidity as Cineplex manages through this
transitional period to more normalized market conditions.
"With the vaccine roll-out underway, our team is looking forward
to reopening our circuit of theatres and entertainment venues
across Canada and currently
expecting to see a return to more normal operating conditions in
the second quarter. We know Canadians will be looking for safe and
affordable entertainment choices coming out of the pandemic, and
our teams' primary focus right now is how best to leverage and
monetize that inevitable surge of interest come spring," said
Ellis Jacob, President and CEO,
Cineplex. "With the announcement today, we remain confident as ever
in our strategy and financial outlook as well as the ability of the
industry as a whole to not only recover, but thrive."
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in Canada, the United
States or any other jurisdiction.
Caution Regarding Forward Looking Statements
Certain
information included in this news release contains forward-looking
statements within the meaning of applicable securities laws.
These forward-looking statements include, among others, statements
with respect to Cineplex's objectives, goals and strategies to
achieve those objectives and goals, as well as statements with
respect to Cineplex's beliefs, plans, objectives, expectations,
anticipations, estimates and intentions. The words "may",
"will", "could", "should", "would", "suspect", "outlook",
"believe", "plan", "anticipate", "estimate", "expect", "intend",
"forecast", "objective" and "continue" (or the negative thereof),
and words and expressions of similar import, are intended to
identify forward-looking statements.
By their very nature, forward-looking statements involve inherent
risks and uncertainties, including those described in Cineplex's
annual information form for the year ended December 31, 2019 ("AIF"), its management
discussion and analysis for the year ended December 31, 2019 ("Annual MD&A") and its
management discussion and analysis for the three and nine months
ended September 30, 2020 ("Interim
MD&A"). Those risks and uncertainties, both general and
specific, give rise to the possibility that predictions, forecasts,
projections and other forward-looking statements will not be
achieved. Certain material factors or assumptions are applied in
making forward-looking statements and actual results may differ
materially from those expressed or implied in such statements.
Cineplex cautions readers not to place undue reliance on these
statements, as a number of important factors, many of which are
beyond Cineplex's control, could cause actual results to differ
materially from the beliefs, plans, objectives, expectations,
anticipations, estimates and intentions expressed in such
forward-looking statements. These factors include, but are not
limited to, the anticipated completion of the proposed Note
Offering, the use of proceeds from the proposed Note Offering, the
terms of the Notes and anticipated benefits of completing the
proposed Note Offering, the duration and impact of the COVID-19
pandemic on Cineplex, the movie exhibition industry and the economy
in general, as well as Cineplex's response to the COVID-19 pandemic
as it relates to the closure of its theatres and location-based
entertainment venues, employee reductions and other cost- cutting
initiatives, and increased expenses relating to safety measures
taken at its facilities to protect the health and well-being of
customers and employees; Cineplex's expectations with respect to
liquidity and capital expenditures, including its ability to meet
its ongoing capital, operating and other obligations, and
anticipated needs for, and sources of, funds; Cineplex's ability to
execute cost-cutting and revenue enhancement initiatives in
response to the COVID-19 pandemic; risks generally encountered in
the relevant industry, competition, customer, legal, taxation and
accounting matters; the outcome of any litigation surrounding the
termination of the Cineworld transaction; and diversion of
management time on litigation related to the Cineworld
transaction.
The foregoing list of factors that may affect future results is not
exhaustive. When reviewing Cineplex's forward-looking statements,
readers should carefully consider the foregoing factors and other
uncertainties and potential events. Additional information about
factors that may cause actual results to differ materially from
expectations and about material factors or assumptions applied in
making forward-looking statements may be found in the "Risks and
Uncertainties" section of Cineplex's AIF, Annual MD&A and
Interim MD&A.
Cineplex does not undertake to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable Canadian securities
law. Additionally, we undertake no obligation to comment on
analyses, expectations or statements made by third parties in
respect of Cineplex, its financial or operating results or its
securities. All forward-looking statements in this news release are
made as of the date hereof and are qualified by these cautionary
statements. Additional information, including Cineplex's AIF,
Annual MD&A, Interim MD&A and the Third Amendment can be
found on SEDAR at www.sedar.com.
About Cineplex
Cineplex (TSX: CGX) is a top-tier
Canadian brand that operates in the Film Entertainment and Content,
Amusement and Leisure, and Media sectors. A leading entertainment
and media company, Cineplex welcomes millions of guests annually
through its circuit of theatres and location based entertainment
venues across the country. In addition to being Canada's largest and most innovative film
exhibitor, Cineplex also operates successful businesses in digital
commerce (CineplexStore.com), food service, alternative programming
(Cineplex Events), cinema media (Cineplex Media), digital
place-based media (Cineplex Digital Media) and amusement solutions
(Player One Amusement Group). Additionally, Cineplex operates
Canada's favourite destination for
'Eats & Entertainment' (The Rec Room) and entertainment
complexes specially designed for teens and families (Playdium).
Cineplex is a joint venture partner in SCENE, Canada's largest entertainment loyalty
program.
Proudly recognized as having one of the country's Most Admired
Corporate Cultures, Cineplex employs approximately 13,000 people in
its offices across Canada and
the United States. To learn more
visit Cineplex.com or download the Cineplex App.
SOURCE Cineplex