Cinema group Cineworld has secured an additional $200m of incremental loans from existing lenders as it looks to ride out the ongoing pandemic.
The loans mature in May 2024. The company 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, which it said would help the group recover in the coming months and years.
Cineworld has significant operations in both the UK and U.S. that have been attempting to get back to business after a devastating 15 months littered with lockdowns.
The chain releases its 2021 interim results on August 12.
“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,” said Cineworld CEO Mooky Greidinger.