| Item 7.01 | Regulation FD Disclosures. |
Cinemark Holdings, Inc. (the “Company,” “we,” “us” or “our”) is providing the following disclosure, which was included in a preliminary offering memorandum, dated August 17, 2020, in connection with the Notes Offering (described in Item 8.01 below).
Proposed Amendment to Credit Agreement Waiver
Under the terms of the amended and restated senior secured credit facility of our wholly-owned subsidiary, Cinemark USA, Inc. (“Cinemark USA”), as amended (the “Credit Agreement”), when revolving loans are outstanding under the Credit Agreement, Cinemark USA is required to maintain a consolidated net senior secured leverage ratio (as defined in the Credit Agreement) of not greater than 4.25 to 1.00. In April 2020, Cinemark USA received a waiver of such maintenance covenant from the majority of revolving lenders under the Credit Agreement for the fiscal quarters ending September 30, 2020 and December 31, 2020. Cinemark USA intends to amend and restate the existing waiver to (i) extend the waiver of the leverage covenant through the fiscal quarter ending on September 30, 2021, (ii) for purposes of testing the consolidated net senior secured leverage ratio for the fiscal quarters ending on December 31, 2021, March 31, 2022 and June 30, 2022, permit Cinemark USA to substitute Consolidated EBITDA (as defined in the Credit Agreement) for the first three fiscal quarters of 2019 in lieu of Consolidated EBITDA for the corresponding fiscal quarters of 2021, (iii) modify the restrictions imposed by the covenant waiver and (iv) make such other changes to permit the issuance of the Notes (as defined below) and the related transactions. While the Notes Offering (as defined below) is conditioned upon the receipt of the waiver amendment, as of the date hereof, Cinemark USA has received the required consents for such waiver, which we expect to become effective upon (and subject to) the consummation of the Notes Offering.
The information set forth in Item 7.01 of this Current Report on Form 8-K (this “Report”) is being furnished, not filed, pursuant to Regulation FD. Accordingly, this information will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended (the “Securities Act”), unless specifically identified therein as being incorporated therein by reference. The furnishing of this information is not intended to, and does not, constitute a determination or admission by the Company that this information is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company or any of its affiliates.
On August 17, 2020, the Company issued a press release announcing that the Company plans to commence a private offering of $400 million aggregate principal amount of convertible senior notes due 2025 (the “Notes”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act (the “Notes Offering”). A copy of the press release is being filed as Exhibit 99.1 to this Report and is incorporated herein by reference.
Neither the Notes nor any shares of the Company’s common stock issuable upon conversion of the Notes have been, or will be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and such securities may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws. This Report shall not constitute an offer to sell or the solicitation of an offer to buy, any securities, nor shall there be any sales of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
| Item 9.01 | Financial Statements and Exhibits. |
