Cineplex Aims for C$550 Million Private Placement of Bonds in Refinancing Bid

By Adriano Marchese

Cineplex said it will look to raise 550 million Canadian dollars ($408.5 million) in new senior secured notes as part of a comprehensive refinancing plan to give it more financial flexibility.

The Canadian movie-theater chain said Thursday that it is proposing to amend the terms of its existing 5.75% convertible unsecured subordinate debentures due Sept. 30 of next year.

As part of the refinancing plan, Cineplex intends to replace an existing senior revolving credit facility with a new C$100 million senior secured credit facility.

It also plans to raise C$550 million through a private placement of new senior secured notes, and partially redeem its C$316.3 million of aggregate principal amount of its current convertible debentures while paying down the principal by C$100 million.

Cineplex said that this refinancing plan will have the benefit of extending debt maturities, reduce the restrictions imposed by debt covenants, and reduce potential dilution from the convertible debentures.

The plan has the support of over 61% of its current debenture holders, it said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 08, 2024 06:54 ET (11:54 GMT)

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