Monday, motion picture exhibitor Cinemark, Inc. (CNK) said that it has started a cash tender offer for any and all of its 9.75% Senior Discount Notes due 2014 of which $419.4 million principal amount at maturity currently remains outstanding. Separately, the company said it plans to commence a private offering of $470 million of Senior Notes due 2019 to eligible purchasers, through its indirect wholly-owned subsidiary, Cinemark USA, Inc.
Total consideration pursuant to the tender offer shall be $1,048.75 for each $1,000 principal amount at maturity of the Notes validly tendered at or prior to the consent date, and not validly withdrawn at or prior to that date.
The total consideration consists of tender offer consideration of $1,018.75 for each $1,000 principal amount at maturity of the Notes and a consent payment of $30.00 for each $1,000 principal amount at maturity of the Notes.
The company said that in conjunction with the tender offer, it also soliciting consents to adopt proposed amendments to the indenture under which the Notes were issued that would eliminate substantially all restrictive covenants and certain event of default provisions. Any holder who tenders Notes pursuant to the offer must also deliver a consent, Cinemark noted.
Regarding the $470 million private offering, Cinemark said that the notes will be guaranteed by all of its subsidiaries that guarantee the company's and the guarantors' debt. Cinemark USA, Inc. intends to distribute majority of the proceeds to fund the 9.75% senior discount notes due 2014 pursuant to a cash tender offer announced today.
Proceeds from the proposed offering will also be used to pay the related fees and expenses associated with this new offering and the cash tender offer. Remaining proceeds will be used for general corporate purposes.
CNK is currently trading at $10.71,down $0.03 or 0.28%, on the NYSE.
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