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Cineplex Announces Closing of $275 Million Offering of Convertible Debentures
Cineplex Announces Closing of $275 Million Offering of Convertible Debentures Cana...
About this update from Cineplex Inc.
[{"type":"text","content":"\n\n\n\nCineplex Announces Closing of $275 Million Offering of Convertible Debentures\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, July 15, 2020\n\n\n\nTORONTO, July 15, 2020 /CNW/ - Cineplex Inc. (\"Cineplex\" or the \"Company\") (TSX: CGX) is pleased to announce that it has completed its previously announced offering of $275 million aggregate principal amount of 5.75% convertible unsecured subordinated debentures (the \"Debentures\") at a price of $1,000 per Debenture (the \"Offering\"). The Company has granted the underwriters an over-allotment option to purchase up to an additional $41,250,000 aggregate principal amount of Debentures (the \"Over-Allotment Option\"). The Over-Allotment Option will be exercisable by the underwriters for a period of 30 days from today.\n\n \n \n \n \n \n \n\n \nThe Offering was made through a syndicate of underwriters led by Scotiabank and including BMO Capital Markets, RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc. and TD Securities Inc. The Debentures have been listed on the TSX under the symbol CGX.DB.B. As previously announced, the Company will use the net proceeds of the Offering to repay indebtedness under its credit facilities, of which $100 million will be a permanent repayment (the \"Permanent Repayment\") and the balance would be available for borrowing under the Company's revolving credit facility. \nThe Offering satisfies the condition under the amendment agreement to the seventh amended and restated credit agreement Cineplex entered into with its lenders on June 29, 2020 which requires that Cineplex raise $250 million of new financing, a portion of which would be used to make the Permanent Repayment. \nThe Debentures have not and will not be registered under the U.S. Securities Act of 1933, as amended (the \"Act\"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy th...