Cineplex has raised CAN$117 million in fresh cash to help repay debt by selling its Toronto headquarters and leasing it back and expanding its customer loyalty program.
Cineplex said around half of the proceeds from both transactions will be used to permanently pay down its existing credit facilities. As of Sept. 30., Cineplex had US$350 million in outstanding debt on its balance sheet and a monthly cash burn rate at around US$15 million to remain in operation. The company is relying on property and other asset sales, a federal tax refund and theater rent forgiveness by landlords to help cut operating costs into 2021.
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