Kinepolis Secures 3-Year Bank Credit of EUR 80 Million
January 11, 2021 at 11:44 am EST
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Kinepolis has taken out an additional loan of EUR 80 million with its main bankers for a period of 3 years, in order to be prepared for possible longer delays before the full resumption of its activities, in view of the recent evolution of the COVID-19 pandemic. In this context, the banks also extended the suspension of the credit covenants ('covenant holiday') until 30 June 2022. Kinepolis secured financing through bond issues and, to a more limited extent, by means of bank debt. The covenants are linked solely to the bank credit facilities valued at EUR 220 million. These covenants - which include a maximum debt level - were replaced by a liquidity covenant following the extended suspension. In line with the existing bank credit facilities, the additional credit provides for a number of conditions that limit the disposal of assets, acquisitions and the payment of dividends above a predetermined debt leverage of 3.75.
Kinepolis Group NV specializes in operating multiplex movie theaters. The activity is organized around 3 areas:
- operation of cinema multiplexes: sale of tickets, confectionery, and beverages, sale of advertising space, event organization, etc. At the end of 2023, the group has a network of 109 cinemas in Belgium (11), Canada (36), the Netherlands (19), France (18), the United States (10), Spain (10), Luxembourg (3), in Switzerland and Poland;
- leasing of commercial spaces: restaurants, outlets, etc.;
- other: cinematographic distribution and production, and technical services (primarily technical assistance and projector maintenance; Decatron).