Cineworld offers sweetener for new emergency cash

Cineworld 575x375 adobe stock
By Owen Sanderson
23 Nov 2020

Cineworld has stapled warrants for 9.9% of the company to its latest tranche of emergency funding, a $450m lifeline that comes with an undisclosed but eyewatering interest rate. The new cash has unlocked a further round of covenant waivers from its revolver banks, and should give the company a chance to keep trading until coronavirus vaccines bring back a semblance of normality to the economy.

The cinema chain said on Monday morning that it had agreed terms on a new three year, non-callable $450m debt facility, along with extending the maturities on its incremental revolver from the end of the year to 2024, and agreeing a waiver of all bank covenants until June ...

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