Newly Acquired Cineplex Cinemas in Atlantic Canada expected to reopen beginning October 24th
TORONTO, ONTARIO--(Marketwired - Oct. 21, 2013) -
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Cineplex Inc. ("Cineplex" or the "Company") (TSX:CGX) today announced it has commitments from a syndicate of banks to amend and extend its current credit facilities.
This amendment will include an extended five year term, increased revolving component, and additional flexibility in the permitted use of funds. The amended facilities are expected to total $500 million and be comprised of a $150 million five-year senior secured non-revolving term credit facility and a $350 million five-year senior secured revolving credit facility.
In addition, the amendment will contain provisions allowing for the increase of the credit facility commitment amount by an additional $150 million, if necessary, with the consent of the lenders.
The Company intends to draw upon this amended facility to finance the previously announced acquisition of 24 Empire theatres located in Atlantic Canada, which Cineplex expects to close on October 24, 2013. The Company also recently announced a $100 million public offering of extendible convertible unsecured subordinated debentures on a bought deal basis. The net proceeds of the offering will be used to partially reduce the bank indebtedness that is expected to be incurred upon the closing of the Empire theatres acquisition.
"We are very pleased to announce this credit facilities amendment which provides us with additional capacity and flexibility to finance the acquisition of Empire theatres and continue to execute our strategic plan," said Ellis Jacob, President and CEO, Cineplex Entertainment.
The amended credit facilities will be provided by a syndicate of lenders led by The Bank of Nova Scotia, Royal Bank of Canada and Canadian Imperial Bank of Commerce.
"We anticipate reopening the newly acquired Atlantic Canada theatres on October 24th and October 25th once we complete the installation of new operating systems, interior signage and add our marketing and merchandising programs," said Ellis Jacob. For specific theatre information, please visit Cineplex.com.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts.
These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in Cineplex's Annual Information Form ("AIF"). Those risks and uncertainties include adverse factors generally encountered in the film exhibition industry such as poor film product and unauthorized copying; the risks associated with national and world events, including war, terrorism, international conflicts; natural disasters, extreme weather conditions, infectious diseases; changes in income tax legislation; and general economic conditions. In addition, these risks and uncertainties include the ability to achieve the expected synergies and the timing of same; the effectiveness of integration efforts and risks related to the satisfaction of the conditions to closing the transaction and the related financing arrangements, including future general economic and market conditions, including debt and equity capital markets. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking statement made by us or on our behalf. All forward-looking statements in this press release are qualified by these cautionary statements. These statements are made as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 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. Additional information, including Cineplex's AIF, can be found on SEDAR at www.sedar.com.
Cineplex Inc. ("Cineplex") is one of Canada's leading entertainment companies and operates one of the most modern and fully digitized motion picture theatre circuits in the world. A top-tier Canadian brand, Cineplex operates numerous businesses including theatrical exhibition, food services, gaming, alternative programming (Front Row Centre Events), Cineplex Media, Cineplex Digital Solutions, Cineplex Digital Networks, and the online sale of home entertainment content through CineplexStore.com and on apps embedded in various electronic devices. Cineplex is also a joint venture partner in SCENE - Canada's largest entertainment loyalty program.
Cineplex is headquartered in Toronto, Canada, and operates 137 theatres with 1,465 screens from British Columbia to Quebec, serving approximately 71 million guests annually through the following theatre brands: Cineplex Odeon, SilverCity, Galaxy Cinemas, Colossus, Coliseum, Scotiabank Theatres, Cineplex Cinemas, Cineplex VIP Cinemas, Famous Players and Cinema City. Cineplex also owns and operates the UltraAVX, Poptopia, and Outtakes brands. Cineplex trades on the Toronto Stock Exchange under the symbol CGX.