Cineplex announces comprehensive refinancing plan

Goodmans is acting for Cineplex Inc., a leading Canadian entertainment and media company, in connection with its announcement of a comprehensive refinancing plan to improve financial flexibility and strengthen its balance sheet. 

The comprehensive refinancing plan includes:

• Repaying in full Cineplex's existing senior revolving credit facility and replacing it with a new $100 million senior secured revolving credit facility with a term of at least three years.
• Conducting a private placement of new senior secured notes with a target size of $550 million and a term to maturity of at least five years.
• Redeeming in full its existing 7.5% senior secured second lien notes due February 26, 2026.
• An amendment to effectuate the extension and partial redemption of its $316.3 million of aggregate principal amount of Convertible Debentures to, amongst other things, extend the maturity from September 30, 2025 to March 1, 2030, and reduce the principal amount outstanding by $100 million.

The proposed refinancing involves a complex and simultaneous negotiation and closing of a new “covenant-lite” revolving credit facility, a new senior notes offering and an amendment to existing convertible debentures which must all be completed at the same time as they are conditional upon each other.