Odeon Cinemas Ltd., the largest cinema chain in the U.K. is planning to securitize cinema ticket cash flow next year, say London-based asset-backed bankers. It could not be learned if the company has mandated an investment bank to lead manage the deal. Odeon is said to be planning to raise E300 million. Repeated phone calls to an investor relations officer at Odeon's headquarters in London were not returned.
While Odeon Cinemas is omnipresent in London, the company is adding new cinema complexes across the U.K. Cash raised from a securitization would likely be used to fund the company's expansion plans, say bankers.
While a securitization of cinema ticket cash flow has not been done before in the U.K., there have been similar deals. Madame Tussaud's, the wax museum in London, securitized ticket cash flow and concession sales through a whole business securitization. In addition, several Premiership League football teams have securitized ticket cash flow, trademark licensing receivables and television right payments.