Cineplex Inc.
TSX : CGX

Cineplex Inc.

September 28, 2011 16:05 ET

Cineplex Announces Amendment to Credit Facilities

TORONTO, ONTARIO--(Marketwire - Sept. 28, 2011) - Cineplex Inc. (TSX:CGX) and Cineplex Entertainment Limited Partnership (collectively "Cineplex"), today announced the signing of an amended and restated credit agreement with a maturity of September 28, 2016. This amendment includes an extended five year term, financial covenant improvements, revised revolving and non-revolving components, and additional flexibility in debt management and the permitted use of funds. The amended facilities total $350 million and are comprised of a $150 million five-year senior secured non-revolving term credit facility and a $200 million five-year senior secured revolving credit facility. In addition, there are provisions allowing for the increase of the credit facility commitment amount by an additional $150 million if required with the consent of the lenders. Immediately prior to the closing of this facility Cineplex had borrowings of $235 million.

In addition, Cineplex entered into a five-year interest rate swap agreement on $150 million of the amended facilities. Cineplex's effective interest rate on $150 million of this amended facility will be 3.215% as compared to the 5.345% prior to the refinancing.

The credit facility is provided by a syndicate of relationship banks led by Scotia Capital, RBC Capital Markets and Canadian Imperial Bank of Commerce.

"We are very pleased to announce this amendment which will not only result in significant savings but will provide Cineplex with additional flexibility to continue to execute our strategic plan," said Gord Nelson, Chief Financial Officer.

Cineplex Inc. ("Cineplex") is the largest motion picture exhibitor in Canada and owns, leases or has a joint-venture interest in 130 theatres with 1,351 screens serving approximately 70 million guests annually. Headquartered in Toronto, Canada, Cineplex operates theatres from British Columbia to Quebec and is the exclusive provider of UltraAVX™ and the largest exhibitor of digital 3D and IMAX projection technologies in the country. Proudly Canadian and with a workforce of approximately 10,000 employees, the company operates the following top tier brands: Cineplex Odeon, Galaxy, Famous Players, Colossus, Coliseum, SilverCity, Cinema City and Scotiabank Theatres. Cineplex shares trade on the Toronto Stock Exchange (TSX) under the symbol "CGX". For more information, visit www.cineplex.com.

Contact Information

  • Cineplex Inc.
    Gord Nelson
    Chief Financial Officer
    (416) 323-6602

    Cineplex Inc.
    Pat Marshall
    Vice President, Communications and Investor Relations
    (416) 323-6648
    www.cineplex.com