Cineworld stocks rally amid debt reprieve
The group has secured waivers for its debt covenants until June 2022
Stocks impacted: Cineworld Group (CINE)
Cineworld Group has secured significant additional liquidity that could help the company to withstand the ussies created by the COVID-19 pandemic. The group has secured waivers for its debt covenants until June 2022 along with $450 million in new loans. Cineworld has extended the maturity of its $111-million incremental revolving credit facility from December 2020 to May 2024. According to the company’s statement, these steps will provide the group with financial and operational flexibility until COVID-19 lockdown restrictions in key jurisdictions are eased. Cineworld stocks jumped nearly 20% following the announcement. As a reminder, last month, Fitch Ratings has downgraded Cineworld Group plc's Long-Term Issuer Default Rating (IDR) to 'CCC-' from 'B-', citing the temporary suspension of operations in the US and UK, fast-depleting liquidity, and the significant uncertainty on the pace of recovery as a result of the coronavirus pandemic.
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