Cineworld raises new cash and gains covenant waiver

By Owen Sanderson
28 May 2020

Cineworld announced on Thursday that it had raised on extra $110m of liquidity by extending its revolve. Its lenders also agreed to waive the covenant test for the end of June. The company also plans to tap government lending schemes in the UK and US.

The acquisitive cinema chain said its lenders had agreed to a 9x net debt to Ebitda covenant test at the end of December — a debt ratio which all but ensures the group can comply, and which is above the group’s current enterprise value to Ebitda ratio.

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