/NOT FOR DISTRIBUTION TO
Other elements of the Company's comprehensive refinancing plan which were also completed today are as follows:
- The Company redeemed in full its existing 7.5% senior secured second lien notes due
February 26, 2026 using a portion of the proceeds from the Note Offering. - The Company repaid in full and terminated the eighth amended and restated credit agreement dated
December 13, 2023 with The Bank of Nova Scotia using a portion of the proceeds from the Notes Offering. The Company has also entered into a new$100 million "covenant-lite" revolving credit facility with a maturity date ofMarch 4, 2027 , with a syndicate of banks led by The Bank of Nova Scotia (the "New Credit Facility"). - Amendments (the "Amendments") to the Company's 5.75% convertible unsecured subordinated debentures due
September 30, 2025 (the "Convertible Debentures") have been approved in writing by holders of approximately 89% of the outstanding Convertible Debentures. Accordingly, the debentureholder meeting scheduled forMarch 14, 2024 in respect of the Amendments has been cancelled. The first supplemental indenture giving effect to the Amendments (the "Supplemental Indenture") was executed onMarch 4, 2024 . All of the Amendments are effective as ofMarch 4, 2024 , other than the change in interest rate from 5.75% to 7.75% and the re-designation of the Convertible Debentures to be "7.75% convertible unsecured subordinated debentures dueMarch 1, 2030 ", which shall become effective as ofApril 1, 2024 . - The Amendments include a partial redemption of
$100,000,000 principal amount of the Convertible Debentures on a pro rata basis (the "Partial Redemption"). The record date for the Partial Redemption isMarch 7, 2024 (the "Record Date") and the redemption date isMarch 11 , 2024 (the "Redemption Date"). Only holders of Convertible Debentures on the Record Date will participate in the Partial Redemption. On the Redemption Date, approximately 31.6% of the Convertible Debentures held by holders on the Record Date will be redeemed for a total payment (per$1,000 principal amount of the redeemed Convertible Debentures) of approximately$1,049.11 (comprised of a principal repayment of$1,000 , a premium of$23.50 , and an interest payment of approximately$25.61 ). Following completion of the Partial Redemption, there will be an aggregate of$216,250,000 principal amount of Convertible Debentures outstanding. The Partial Redemption will be funded using a portion of the proceeds from the Note Offering.
Each of (i) the trust indenture governing the Notes, (ii) the Supplemental Indenture, and (iii) the credit agreement governing the New Credit Facility will be filed on the Company's profile on SEDAR+ (www.sedarplus.ca).
The Notes were offered for sale in each of the provinces of
The Notes Offering was underwritten by BMO Capital Markets and Scotiabank, as joint active bookrunning managers, in a syndicate that also included
About Cineplex
Cineplex (TSX:CGX) is a top-tier Canadian brand that operates in the
Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs over 10,000 people in its offices and venues across
Caution Regarding Forward Looking Statements
Certain information included in this news release contains forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to Cineplex's objectives, goals and strategies to achieve those objectives and goals, as well as statements with respect to Cineplex's beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, including those described in Cineplex's annual information form for the year ended December 31, 2022 ("AIF") and the management's discussion and analysis for the year ended
The foregoing list of factors that may affect future results is not exhaustive. When reviewing Cineplex's forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the "Risks and Uncertainties" section of Cineplex's AIF and MD&A.
Cineplex does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable Canadian securities law. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Cineplex, its financial or operating results or its securities. All forward-looking statements in this news release are made as of the date hereof and are qualified by these cautionary statements. Additional information, including Cineplex's AIF and MD&A, can be found on Sedar+ (www.sedarplus.ca).
SOURCE Cineplex
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