Cineplex Inc.
TSX : CGX

Cineplex Inc.

November 05, 2013 09:22 ET

Cineplex Inc. Announces Closing of C$100 Million Public Offering of Convertible Debentures

TORONTO, ONTARIO--(Marketwired - Nov. 5, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Cineplex Inc. ("Cineplex" or the "Company") (TSX:CGX) is pleased to announce that it has completed its offering of C$100.0 million aggregate principal amount of 4.50% convertible unsecured subordinated debentures (the "Debentures") at a price of C$1,000 per Debenture (the "Offering").

The Offering was completed on a bought deal basis and was underwritten by a syndicate of underwriters, co-led by Scotiabank and RBC Capital Markets. The Debentures have been listed on the TSX under the symbol CGX.DB.A. As previously announced, the Company intends to use the net proceeds of the Offering to partially reduce bank indebtedness under the Company's credit facility in connection with the Company's acquisition of 24 theatres located in Atlantic Canada from Empire Theatres Limited.

The 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 the securities in any jurisdiction.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts.

These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in Cineplex's Annual Information Form ("AIF"). Those risks and uncertainties include adverse factors generally encountered in the film exhibition industry such as poor film product and unauthorized copying; the risks associated with national and world events, including war, terrorism, international conflicts; natural disasters, extreme weather conditions, infectious diseases; changes in income tax legislation; and general economic conditions. In addition, these risks and uncertainties include the ability to achieve the expected synergies and the timing of same; the effectiveness of integration efforts and risks related to the satisfaction of the conditions to closing the transaction and the related financing arrangements, including future general economic and market conditions, including debt and equity capital markets. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking statement made by us or on our behalf. All forward-looking statements in this press release are qualified by these cautionary statements. These statements are made as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Cineplex, its financial or operating results or its securities. Additional information, including Cineplex's AIF, can be found on SEDAR at www.sedar.com.

About Cineplex

Cineplex is one of Canada's leading entertainment companies and operates one of the most modern and fully digitized motion picture theatre circuits in the world. A top-tier Canadian brand, Cineplex operates numerous businesses including theatrical exhibition, food services, gaming, alternative programming (Front Row Centre Events), Cineplex Media, Cineplex Digital Solutions, Cineplex Digital Networks, and the online sale of home entertainment content through CineplexStore.com and on apps embedded in various electronic devices. Cineplex is also a joint venture partner in SCENE - Canada's largest entertainment loyalty program.

Cineplex is headquartered in Toronto, Canada, and operates 161 theatres with 1,635 screens from coast to coast, through the following theatre brands: Cineplex Odeon, SilverCity, Galaxy Cinemas, Colossus, Coliseum, Scotiabank Theatres, Cineplex Cinemas, Cineplex VIP Cinemas, Famous Players and Cinema City. Cineplex also owns and operates the UltraAVX, Poptopia and Outtakes brands. Cineplex trades on the Toronto Stock Exchange under the symbol CGX. More information is available at cineplex.com.

Contact Information

  • For information, interviews or photos please contact:
    Pat Marshall
    Vice President, Communications and Investor Relations
    Cineplex Entertainment
    416-323-6648
    pat.marshall@cineplex.com

    Mike Langdon
    Director, Communications
    Cineplex Entertainment
    416-323-6728
    mike.langdon@cineplex.com