| 2020-11-24 14:38:48|
CNNWF, AMC… 14:38 11/24 11/24/20
Movie theater stocks spike after Regal's owner Cineworld get $750M lifeline
Shares of movie theater companies like AMC Entertainment (AMC), Cinemark (CNK), and IMAX (IMAX) are moving higher on Tuesday after peer Cineworld (CNNWF), which owns the U.S. Regal cinema chain, secured an additional $750M in financing on Monday to help absorb the damage from COVID-19 closings and restrictions. Cineworld said: "The Group is pleased to announce it has secured significant additional liquidity whilst implementing further operational measures to deliver enhanced profitability over the long term." Cineworld secured a new debt facility of $450M and issuance of equity warrants, in addition to agreeing to the terms and bank covenant waivers until June 2022. Mooky Greidinger, CEO of Cineworld, commented: "The measures we are announcing today deliver over $750M of extra liquidity to support our business. Over the long term, the operational improvements we have put in place since the start of the pandemic will further enhance Cineworld's profitability and resilience. The Group continues to monitor developments in the relevant markets in which we operate and our entire team is focused on managing our cost base. We look forward to resuming our operations and welcoming movie fans around the world back to the big screen." PRICE ACTION: Shares of AMC Entertainment are up 16%, or 60c per share, to $4.42 per share, Cinemark Holdings is up 8%, or $1.20 per share, to $16.85 and IMAX is up about 3%, or 40c, to $16 per share in afternoon trading.