The U.K.-based Cineworld multiplex group has agreed with a group of private institutional investors terms for a new $250 million secured debt facility that matures in 2023. This is in addition to the credit facility increase of $110 million announced in May.
The new debt and credit facilities will help the group tackle some of the losses incurred from cinemas around the globe shuttering from March due to the coronavirus pandemic.
“With the easing of lockdown restrictions in key jurisdictions, Cineworld is excited to welcome customers back to cinemas and enjoy the best place to watch a movie,” the company said in a statement.
Last week the group announced that cinemas in several territories across the world would begin reopening, including the U.S. and U.K. on July 10, Poland and Bulgaria on July 3, Czech Republic and Slovakia on June 26, with Hungary and Romania anticipated for the week of July 3.
“Among the new measures introduced, we have updated our booking system to ensure social distancing within and throughout our auditoriums; adapted our daily movie schedules to manage queues and avoid the build-up of crowds in our lobbies; and enhanced our cleanliness and sanitation procedures across all of our sites,” the company said in a statement last week.
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Potential blockbusters like “Tenet” and “Mulan” will be on offer in Cineworld multiplexes in the weeks to come, while Picturehouse Cinemas, owned by Cineworld, will reopen with “Proxima,” starring Eva Green.
There are larger challenges ahead, however, as Cineworld Group recently backed out of a deal to acquire Canada’s Cineplex for $2.1 billion, citing breaches in the agreement for the transaction.
