Cineplex amends creditor agreement again in bid to reduce debt during COVID-19 pandemic

Cineplex amends creditor agreement again in bid to reduce debt during COVID-19 pandemic

Cineplex Inc. says it has once again amended its credit agreement with lenders as it struggles through the financial impact of the COVID-19 virus on its operations.

The country’s largest theatre chain says the third amendment allows for the suspension of financial covenant testing to continue until the fourth quarter under certain conditions.

These include the completion of a minimum $200-million financing of second lien secured notes by March 31.

Net proceeds must be used to repay debt, including $100-million that would be a permanent repayment.

Cineplex also says it entered into an “engagement letter” with BMO Capital Markets and Scotiabank for a proposed private placement offering of second lien secured notes following the release of its fourth-quarter results on Feb. 11.

Net proceeds from the notes offering would be to repay debt and add liquidity until the return of more normalized market conditions.

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Published at Tue, 09 Feb 2021 00:08:38 +0000