Cineworld Group plc Further Liquidity and Covenant Flexibility Secured (9914G)
July 30 2021 - 1:00AM
UK Regulatory
TIDMCINE
RNS Number : 9914G
Cineworld Group plc
30 July 2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
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VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
30 July 2021
Cineworld Group plc (" Cineworld " or the " Group ")
Further Liquidity and Covenant Flexibility Secured
Following the opening of all cinemas in June 2021, Cineworld is
pleased to announce it secured $200m of incremental loans maturing
in May 2024 from a group of its existing lenders. The New Debt
Facility does not have a material impact on the Group's weighted
average cost of debt.
The Group has also agreed covenant amendments on certain of its
existing debt facilities, including reducing the minimum liquidity
requirement and relaxing limitations on the use of cash, among
other modifications which will further support the Group as cinemas
restart trading.
Cineworld believes that this further liquidity, in addition to
the US CARES Act refund of $203m that was fully received in May
2021 and the $213m convertible bond raised in March 2021, together
with the tight control over cash usage will provide the Group with
the financial and operational flexibility and resilience to execute
on its business strategy as it resumes its operations.
Since cinemas started reopening in April 2021, trading has
continued to improve, and the Group is now well-positioned to
benefit from pent-up customer demand and the exceptionally strong
film slate through the second half of 2021.
The Group expects to release its 2021 Interim Results on 12
August 2021 where a further update on trading will be provided.
Mooky Greidinger, CEO of Cineworld, commented:
"The additional liquidity announced today provides the Group
with significant operating flexibility now that cinemas have opened
across the world. 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."
Contacts
Cineworld Group plc: Finsbury:
+44 (0)20 8987
Israel Greidinger 5000 James Leviton +44 (0)20 7251 3801
Nisan Cohen investors@cineworld.co.uk Rob Allen cineworld-lon@finsbury.com
Manuela Van Dessel
The person responsible for arranging the release of this
announcement is Fiona Smith, Company Secretary.
Cautionary note concerning forward looking statements
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.
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
authorized 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.
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END
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