Cineplex Announces Offering of Convertible Debentures

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[{"type":"text","content":"\n\n\n\nCineplex Announces 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 7, 2020\n\n\n\nTORONTO, July 7, 2020 /CNW/ - Cineplex Inc. (\"Cineplex\" or the \"Company\") (TSX: CGX) today announced that it has filed a preliminary short form prospectus in connection with a marketed public offering (the \"Offering\") of convertible unsecured subordinated debentures (the \"Debentures\"). The Offering will be priced in the context of the market with terms to be determined at the time of entering into an underwriting agreement. It is currently anticipated that the size of the Offering will be $275 million aggregate principal amount of Debentures.\n\n \n \n \n \n \n \n\n \nThe Company will also grant the Underwriters an over-allotment option to purchase up to an additional 15% of the Debentures to be sold pursuant to the Offering (the \"Over-Allotment Option\"). The Over-Allotment Option will be exercisable for a period of 30 days from the closing date of the Offering. \nThe Offering is being 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.\nThe Debentures will mature and be repayable on September 30, 2025 (the \"Maturity Date\") and will bear interest at the rate determined at the time of pricing, payable semi-annually in arrears on September 30 and March 31 in each year (the \"Interest Payment Date\"), commencing on September 30, 2020. At the holder's option, the Debentures may be converted into common shares of the Company (the \"Common Shares\") at any time prior to the close of business on the earlier of: (i) five business days prior to the Maturity Date, and (ii) if called for redemption, five business days immediately preceding the dated fixed for redemption of the Debentures, at a conversion price to be determined at the time of pricing. Holders who convert their Debentures will receive accrued and unpaid interest for the period from the date of the lat...

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