Cineplex Closes $250 Million Secured Note Financing

Cineplex Inc (TSX: CGX) has closed its previously announced offering of 7.5% senior secured second lien notes. The company managed to raise gross proceeds of $250 million through the offering.

The notes bear interest at a rate of 7.5% per annum and have a maturity of five years from the date of issuance, being February 26, 2026. The offering was lead by BMO Capital Markets and Scotiabank as joint bookrunning managers.

Proceeds from the financing will see a large portion allocated for the permanent reduction of debt on the firms books. $50 million of the proceeds will be used to pay down the firms term facility, while an additional $50 million will be used to pay down the revolving credit facility. Referred to as “permanent repayment,” it appears that the revolver will effectively be reduced in size.

The remaining $144 million in net proceeds will then be used to pay down the revolving credit facility as well, the difference here however is that funds from this portion of the revolve may be redrawn as needed based on liquidity requirements of the company.

Cineplex last traded at $13.67 on the TSX.


FULL DISCLOSURE: Information for this briefing was found via Cineplex and Sedar. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Cineplex Sees Q4 Box Office Results Hit Just 66% Of 2019 Numbers

Consumer habits are shifting, and the box office just ain’t what it used to be....

Friday, January 13, 2023, 09:14:51 AM

Cineworld Sees Bankruptcy Court Award Immediate US$785 Million ‘First Day’ Relief

British cinema chain Cineworld Group gets its ‘first day’ relief in the hopes to satisfy...

Friday, September 9, 2022, 10:29:00 AM

Cineplex: BMO Reiterates Targets Despite Earnings Missing Consensus

Cineplex Inc. (TSX: CGX) reported its second quarter financial results last week. The company announced...

Monday, August 15, 2022, 12:24:00 PM

Cineplex: BMO Lifts Price Target To $15 After Q3 Earnings

On November 11th, Cineplex Inc. (TSX: CGX) reported its third quarter financial results. The company...

Saturday, November 20, 2021, 10:10:00 AM

Cineplex: Consensus Price Target Sees Marginal Lift Post Earnings

Cineplex Inc. (TSX: CGX) reported their first-quarter financial results last week, with the company reporting...

Monday, May 10, 2021, 10:41:00 AM