April 13, 2020
Its rival may be headed to bankruptcy, but Cinemark Holdings April 13 announced that its theatrical subsidiary is seeking $250 million in new private security debt — exempt from the registration requirements of the Securities Act of 1933 — to be repaid by 2025.
The country’s third-largest movie exhibitor said the new bonds would be guaranteed by its subsidiaries and would be used for general corporate purposes, including further increasing its liquidity.
Headquartered in Plano, Texas, Cinemark operates 554 theaters with 6,132 screens in 42 states domestically and 15 countries throughout South and Central America. It also operates Movie Club, the first U.S. exhibitor-launched subscription ticket program aimed at competing against now-shuttered MoviePass.
AMC Theatres, the world’s largest exhibitor, has reportedly sought legal advice from bankruptcy law firms as it struggles to sustain operations with zero revenue. The chain recently furloughed 600 executives, including CEO Adam Aron.