Regal Cineworld Successfully Completes Major Loan Refinancing

Regal Cineworld Completes Significant Loan Refinancing

Regal Cineworld Group, a leading global theatre operator, has recently completed a notable refinancing effort, securing a new Term Loan B facility worth $1.9 billion. This important financial move comes on the heels of record-breaking revenue figures, highlighting the company's successful recovery trajectory in the cinema industry.

Financial Details of the New Facility

The new facility is structured to provide Regal Cineworld with better financial terms, priced at SOFR + 525 basis points. The maturity date for this loan is set for December 1, 2031, and this refinancing replaces the previous Term Loan B arrangement. Additionally, a $350 million Revolving Credit Facility, priced at SOFR + 425 basis points and maturing on December 1, 2029, has also been included in the new financing package.

Positive Market Reception

The market's response to Regal Cineworld's refinancing efforts has been overwhelmingly positive. CEO Eduardo Acuna noted that the refinancing signifies the momentum the company is experiencing. In the third quarter, Regal Cineworld reported welcoming over 49 million guests to its theatres, generating total revenue exceeding $1 billion. Notably, the company also saw record-high concession spending per guest, further underscoring its operational success.

Cost Savings Through Refinancing

One significant advantage of the refinancing transaction is the anticipated reduction in interest expenses, amounting to approximately $60 million per year. This financial relief is a key factor in allowing Regal Cineworld to focus on its long-term strategies and operational improvements without the constraints of higher debt costs.

Strategic Positioning in the Market

The refinancing comes at a strategic time following a record-breaking Thanksgiving weekend at the box office, reiterating investor confidence in Regal Cineworld and the broader cinema sector's recovery. As the company moves forward, it aims to leverage its strong market position and operational advantages to enhance the moviegoing experience.

About Regal Cineworld

Regal Cineworld operates one of the largest and most geographically diverse theatre circuits worldwide. The company provides entertainment under various brands, including Regal, Cineworld, Picturehouse, and more. Regal Cineworld ranks second in the global theatrical exhibition business by the number of screens, operating in numerous countries and focusing on delivering superior moviegoing experiences.

Commitment to Enhancing Customer Experience

Regal Cineworld is dedicated to providing its guests with a top-tier experience through an extensive selection of premium large formats, an unlimited subscription program, and enhanced food and beverage offerings. This commitment aims to make every cinema visit a memorable one.

Regal Cineworld Media Contact

For media inquiries, please contact Manuela Van Dessel, Vice President and Group Treasurer at Regal Cineworld, at (865) 925-9539.

Frequently Asked Questions

What is the significance of Regal Cineworld's refinancing?

The refinancing allows Regal Cineworld to secure favorable terms on its loans, reducing financial strain and enhancing investment potential.

How much revenue did Regal Cineworld generate in Q3?

Regal Cineworld generated over $1 billion in revenue during the third quarter, welcoming over 49 million guests to its theatres.

What are the expected savings from the refinancing?

The refinancing is projected to save the company approximately $60 million per year in interest payments.

When is the new Term Loan B maturing?

The new Term Loan B facility matures on December 1, 2031.

What brands are under the Regal Cineworld umbrella?

Regal Cineworld operates under several brands, including Regal, Cineworld, Picturehouse, Planet, and Cinema City.

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