British cinema operator Cineworld recently announced that it has secured a $250mn debt facility from a clutch of private institutional investors. The recent funding is expected to help the cinema operator to prepare for reopening of theatres following the easing of coronavirus-led lockdowns globally.
The funding is also significant for the company as it had earlier abandoned a $1.65bn takeover plan of Canada’s Cineplex earlier this month. The deal had raised concerns about Cineworld’s growing debt pile, which currently stands at $3.5 billion.
Cineworld, which expects to reopen in the United States and the UK on July 10, said the new facility, along with covenant amendments and a $110mn increase in revolving credit facility, helped add more heft to its balance sheet.
The Regal cinema owner operates about 9,500 screens globally, with more than 7,000 in the United States.
As part of its reopening plan, the company said last week that it would put in place additional cleaning and social distancing measures to try to reassure film fans before high-profile summer releases including director Christopher Nolan’s thriller “Tenet” and Walt Disney Co’s action epic “Mulan”.
Cineworld, which closed its cinemas globally three months ago, said in April it was suspending its dividend and that executive directors were deferring their salaries in an attempt to save costs.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.