With the end of the COVID-19 pandemic still not in sight, Kinepolis has taken out an additional loan of 80 million euros with its main bankers for a period of three years.
“We are piloting the Group through the COVID pandemic as planned and are on schedule with regards to cash planning, with sufficient financial reserves to allow the Group to bridge a full closure scenario for still more than 10 months,” said Kinepolis Group CEO Eddy Duquenne. “The additional credit places us in a reassuring position in terms of financial reserves as it enables us to prepare for scenarios where the end of the pandemic might take longer than anticipated. Until recently, no one had even considered the possibility of a third wave. Be that as it may, we remain confident that we will be able to resume our operations and build on our recovery in the coming months.”
The banks also extended the suspension of the credit covenants until June 30, 2022. Kinepolis secured financing through bond issues and, to a more limited extent, by means of bank debt. The covenants are linked solely to the bank credit facilities valued at 220 million euros. These covenants, which include a maximum debt level, were replaced by a liquidity covenant following the extended suspension. In line with the existing bank credit facilities, the additional credit provides for a number of conditions that limit the disposal of assets, acquisitions and the payment of dividends above a predetermined debt leverage of 3.75.
Because of its healthy balance sheet, the strong cost control measures, the solid real estate position and the back-up of an 80 percent guarantee provided by Gigarant, Kinepolis succeeded in concluding the additional credit at attractive commercial terms.
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