Cinemark USA, Inc. Amends Senior Secured Credit Agreement
PLANO, Texas--(BUSINESS WIRE)-- Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, announced today that through its wholly-owned subsidiary, Cinemark USA, Inc. (the “Company”), it has successfully completed an amendment to its senior secured credit facility that included a repricing of the term loan under the facility and an extension of the maturity by approximately three years. The Company’s credit agreement was amended to reduce the rate at which the term loan bears interest, which will now be at either a base rate plus 0.75% or LIBOR plus 1.75%, as elected by the Company in accordance with the credit agreement, representing an annual cash interest savings of 25 basis points or approximately $1.7 million per year.
“We are extremely pleased that the strength of our balance sheet and consistency of our financial results allowed us to once again improve the margin of our term loan and extend its maturity date by approximately three years,” stated Sean Gamble, Cinemark’s Chief Operating Officer and Chief Financial Officer. “This opportunistic transaction further improves our Company’s financial position by staggering the maturities of our debt instruments and driving meaningful interest savings.”
About Cinemark Holdings, Inc.:
Cinemark is a leading domestic and international motion picture exhibitor, operating 533 theatres with 5,959 screens in 41 U.S. states, Brazil, Argentina, and 13 other Latin American countries as of December 31, 2017. For more information, go to investors.cinemark.com.
Certain matters within this press release include “forward–looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements. For a description of these factors, please review the “Risk Factors” section or other sections in the Company’s Annual Report on Form 10-K filed February 23, 2018 and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by such risk factors.
Source: Cinemark Holdings, Inc.
Released March 29, 2018