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May 28, 2020, 3:49 a.m. EDT

Cineworld shares jump on covenant waiver and increase in credit facility

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By Steve Goldstein

UK:CINE

Shares of Cineworld Group /zigman2/quotes/206525056/delayed UK:CINE -0.99% surged 29% in early London trade as the movie-chain operator said it negotiated a covenant waiver. Cineworld said it has increased its leverage covenant to 9.0x net debt to EBITDA for the December 2020 testing date, has agreed the terms of $110 million of additional liquidity through an increase in its revolving credit facility, has received approval to apply for $45 million through the CLBILS loan scheme in the UK and expects shortly to commence a process to access $25 million through the U.S. government CARES Act. Cineworld currently anticipates that government restrictions related to cinemas will be lifted in each of its territories by July but said it has sufficient headroom even in the unlikely event cinemas remain closed until the end of the year.

/zigman2/quotes/206525056/delayed
UK : U.K.: London
34.90 p
-0.35 -0.99%
Volume: 32.18M
Aug. 7, 2020 4:35p
P/E Ratio
3.40
Dividend Yield
0.00%
Market Cap
£479.11 million
Rev. per Employee
N/A
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