Cineworld Group plc Further Liquidity Secured and Notice of AGM (4648T)
March 25 2021 - 2:01AM
UK Regulatory
TIDMCINE
RNS Number : 4648T
Cineworld Group plc
25 March 2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (DIRECTLY OR
INDIRECTY) IN WHOLE OR IN PART IN, INTO OR FROM THE UNITED STATES
OF AMERICA OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT
JURISDICTION
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
25 March 2021
Cineworld Group plc ("Cineworld" or the "Group")
Further Liquidity Secured and Notice of General Meeting
Cineworld is pleased to announce it has secured binding
commitments from a group of leading institutional investors for a
new $213 million convertible bond due 2025 (the "Bond").
The net proceeds of the issue of the Bond will provide further
liquidity for the Group in the event of continued disruption as a
result of COVID-19. The Bond, together with the expected US CARES
Act tax refund, will provide the Group with a liquidity runway to
year-end in the event that cinemas remain closed.
The Bond will carry a coupon of 7.5 per cent. per annum and will
be convertible into ordinary shares of the Group. The initial
conversion price has been set at $1.7620 per share (which equates
to GBP1.2850 per share based on a USD:GBP FX rate of 0.7293)
representing a premium of 25 per cent. above the closing price per
Cineworld share on 24 March 2021 (being the last business day prior
to the date of this announcement).
Mooky Greidinger, CEO of Cineworld, commented:
"The Bond announced today provides the Group with a significant
liquidity buffer as we reopen across the world. We remain confident
about the next chapter of our development and we look forward to
welcoming our customers back to the best place to watch a
movie."
Notice of General Meeting
In parallel, the Group announces that it will today publish and
post (or otherwise make available) to shareholders a circular (the
"Circular") containing a Notice of General Meeting convening a
general meeting to seek shareholder approval of a resolution
temporarily suspending the borrowing limit in Cineworld's Articles
of Association. The raising by the Group of any additional debt
(including the proposed Bond) will be subject to approval of the
resolution by shareholders. The Group's commitment to issue the
Bond is also subject to certain other conditions precedent.
The General Meeting will be held on Monday 12 April 2021 at
10.30 a.m. at Cineworld's registered office at Vantage London,
Great West Road, Brentford TW8 9AG. However, in line with recent UK
guidance in relation to holding company meetings during the
COVID-19 pandemic, the General Meeting will be run as a closed
meeting and shareholders will not be able to attend in person.
Shareholders should refer to the Circular for details on how to
vote by proxy. In accordance with Listing Rule 9.6.1, a copy of the
Circular will be submitted to the National Storage Mechanism and
will shortly be available to view at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism and on
Cineworld's website at www.cineworldplc.com .
Enquiries:
Cineworld Group investors@Cineworld.co.uk
plc 8th Floor, Vantage
Israel Greidinger London
Nisan Cohen Great West Road
Manuela Van Dessel Brentford
TW8 9AG
Media cineworld-lon@finsbury.com
James Leviton +44 (0)20 7251 3801
Rob Allen
Further information :
This announcement and the information contained herein are for
information purposes only, and this announcement does not contain
or constitute, and should not be construed as, an offer to purchase
or sell or issue securities in the United States of America or in
any jurisdiction in which such offer or solicitation is not
authorised or to any person to whom it is unlawful to make such an
offer or solicitation, or otherwise constitute an inducement,
invitation, commitment, solicitation or recommendation to any
person to purchase, subscribe for, or otherwise acquire securities
in Cineworld or any of its affiliates.
Certain statements in this announcement are forward looking and
so involve risk and uncertainty because they relate to events, and
depend upon circumstances that may or may not occur in the future
and therefore results and developments can differ materially from
those anticipated. The forward looking statements reflect knowledge
and information available at the date of preparation of this
announcement and the Group undertakes no obligation to update these
forward-looking statements. Nothing in this announcement should be
construed as a profit forecast.
The person responsible for arranging the release of this
announcement is Fiona Smith, Company Secretary.
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END
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