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Cineplex Inc
Symbol CGX
Shares Issued 63,333,238
Close 2021-02-08 C$ 11.25
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Cineplex ensures suspension of covenant until Q4 2021

2021-02-08 17:17 ET - News Release

Mr. Ellis Jacob reports

CINEPLEX ANNOUNCES AMENDMENT TO CREDIT FACILITY

Cineplex Inc. has entered into a third amendment to the seventh amended and restated credit agreement with its lenders. The third amendment provides for, among other things, the continued suspension of financial covenant testing until the fourth quarter of 2021 upon certain conditions being met, including completion of a minimum $200-million financing by the company of second lien secured notes on or prior to March 31, 2021, with a maturity of at least five years. Pursuant to the terms of the third amendment, the net proceeds received from such offering of second lien secured notes must be used to repay indebtedness under the company's credit facilities, of which $100-million would constitute a permanent repayment.

Cineplex also announced today that it has entered into an engagement letter with BMO Capital Markets and Scotiabank in connection with a proposed private placement offering of second lien secured notes, following the release of its fourth quarter and year-end 2020 results on Thursday, Feb. 11, 2021, and subject to market and other conditions. Cineplex intends to use the net proceeds from the proposed note offering, if completed, to repay indebtedness under its credit facilities and provide incremental liquidity as Cineplex manages through this transitional period to more normalized market conditions.

"With the vaccine rollout under way, our team is looking forward to reopening our circuit of theatres and entertainment venues across Canada and currently expecting to see a return to more normal operating conditions in the second quarter. We know Canadians will be looking for safe and affordable entertainment choices coming out of the pandemic, and our teams' primary focus right now is how best to leverage and monetize that inevitable surge of interest come spring," said Ellis Jacob, president and chief executive officer, Cineplex. "With the announcement today, we remain confident as ever in our strategy and financial outlook as well as the ability of the industry as a whole to not only recover, but thrive."

About Cineplex Inc.

Cineplex is a top-tier Canadian brand that operates in the film entertainment and content, amusement and leisure, and media sectors. A leading entertainment and media company, Cineplex welcomes millions of guests annually through its circuit of theatres and location-based entertainment venues across the country. In addition to being Canada's largest and most innovative film exhibitor, Cineplex also operates successful businesses in digital commerce (CineplexStore), food service, alternative programming (Cineplex Events), cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media) and amusement solutions (Player One Amusement Group). Additionally, Cineplex operates Canada's favourite destination for eats and entertainment (The Rec Room) and entertainment complexes specially designed for teens and families (Playdium). Cineplex is a joint venture partner in Scene, Canada's largest entertainment loyalty program.

Proudly recognized as having one of the country's most admired corporate cultures, Cineplex employs approximately 13,000 people in its offices across Canada and the U.S.

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