Cineplex restates credit agreement for extended 2025 maturity

By Wendy Van Sickle

Columbus, Ohio, Dec. 13 – Cineplex Inc. entered into an eighth amended and restated credit agreement with lenders, according to a news release.

The maturity date was extended by one year to Nov. 13, 2025, and the standard administrative provisions relating to the potential replacement of benchmark rates was also changed.

The company said its management remains focused on de-leveraging and optimizing its capital structure.

Cineplex said it has paid down approximately C$55 million under its credit facilities as a result of strong second- and third-quarter 2023 results.

In addition, the net proceeds from the recently announced sale of P1AG are expected to be received in the first quarter of 2024 and will be used to further pay down debt under Cineplex's credit facilities, which would result in total debt repayment in excess of C$200 million when combined with the repayments in the past two quarters.

The sale of P1AG is subject to regulatory approvals and other customary closing conditions.

“This significant de-leveraging, coupled with the extended maturity of the credit agreement, will provide flexibility for the company to execute its plan on optimizing its capital structure, which includes key items such as extending maturity dates and potentially modifying the debt composition,” Gord Nelson, chief financial officer of Cineplex, said in the release.

Cineplex is a Toronto-based entertainment and media company.

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