Printer Friendly

CINEPLEX ODEON CORPORATION ANNOUNCES MAJOR FINANCING AND DEBT TO EQUITY CONVERSION AGREEMENTS

 TORONTO, April 13 /PRNewswire/ -- Cineplex Odeon Corporation (NYSE: CPX) today announced two significant agreements that solidify its financial position and help the company take better advantage of the anticipated North American economic recovery. The agreements are:
 -- An improved long-term banking arrangement; and
 -- The conversion to equity of debt owed to the principal shareholders by the corporation, which will reduce total debt and strengthen the company's balance sheet.
 Further information is provided below.
 "Individually, each of these agreements would represent an important step for Cineplex Odeon. Together, they are a milestone that demonstrate a commitment to the long-term future of our company from two of our key stakeholders -- our lenders and our largest shareholders," said Allen Karp, president and CEO. "We view these agreements as highly positive developments that build upon our improved financial performance in 1992."
 Cineplex Odeon has extended the maturity date of its syndicated long-term bank agreement to Dec. 31, 1996. It has also obtained relaxed financial covenants and a more beneficial repayment schedule. The principal payment obligation of $70 million for 1993 has been reduced to $39.5 million. The corporation received $31 million from a supplier as partial prepayment of amounts to be earned over time and as part of an equipment financing program. Cineplex Odeon has used $21 million of these funds towards paying down the $39.5 million due in 1993 and accordingly only $18.5 million remains to be paid during the current year.
 Cineplex Odeon also announced that, in conjunction with and as part of the changes to the long-term bank agreement, its two principal shareholders, MCA INC. of Los Angeles and The Charles Rosner Bronfman Trust of Montreal, have agreed, subject to regulatory approval, to convert U.S. $25 million secured indebtedness owed to them by the Corporation into equity. Fifty percent will be converted at a price based on the weighted average market price of the common shares on The Toronto Stock Exchange in the next five trading days.
 This initial conversion will occur on or about April 27, 1993. The balance will be converted no later than Dec. 31, 1994 at a price based on a similar formula applied at the time of such conversion.
 MCA will convert its debt into subordinate restricted voting shares while the Trust will convert into common shares. MCA currently owns 42,847,361 SRV Shares representing 100 percent of the SRV shares issued and outstanding. The SRV shares are convertible on a one for one basis into common shares under certain circumstances. The Trust currently owns 17,148,641 common shares representing 29.3 percent of the issued and outstanding common shares. The Trust, together with certain of its associates, owns 24,226,157 common shares representing 41.4 percent of the issued and outstanding common shares.
 "With these significant agreements completed, and with a strong line-up of films ahead of us, Cineplex Odeon is better positioned to achieve our primary goal of building long-term value for all our shareholders," Mr. Karp said.
 Cineplex Odeon is one of North America's largest theater circuits, with 1,621 screens in 365 locations, primarily in major markets. The corporation's shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol CPX.
 -0- 4/13/93
 /CONTACT: Howard Lichtman, executive vice president - marketing & communications of Cineplex Odeon Corporation, 416-323-6634/
 (CPX)


CO: Cineplex Odeon Corporation ST: Ontario IN: ENT SU: FNC

SH -- NY019 -- 5100 04/13/93 09:36 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 13, 1993
Words:577
Previous Article:AMEX MEMBERSHIP ELECTS TWO NEW INDUSTRY GOVERNORS, ONE NEW PUBLIC GOVERNOR TO AMEX BOARD; FIVE INCUMBENTS RETURNED FOR THREE-YEAR TERMS
Next Article:SARA LEE CORPORATION TO NAME BOONSTRA PRESIDENT AND CHIEF OPERATING OFFICER
Topics:


Related Articles
CINEPLEX ODEON ANNOUNCES 1991 THIRD QUARTER RESULTS
CINEPLEX ODEON ANNOUNCES 1991 YEAR END RESULTS
CINEPLEX ODEON ANNOUNCES 1992 FIRST QUARTER RESULTS
CINEPLEX ODEON CORPORATION ANNOUNCES 1992 SECOND QUARTER RESULTS AND THE SALE OF CERTAIN THEATERS IN WASHINGTON
CINEPLEX ODEON CORPORATION ANNOUNCES 1992 THIRD QUARTER RESULTS
CINEPLEX ODEON CORPORATION ANNOUNCESCONTINUED IMPROVEMENT IN FINANCIAL RESULTS
CINEPLEX ODEON CORPORATION ANNOUNCES IMPROVED FIRST QUARTER 1993 RESULTS
CINEPLEX ODEON CORPORATION REPORTS THIRD QUARTER EARNINGS VS. LOSS LAST YEAR; CASH FLOW INCREASES SEVEN-FOLD
CINEPLEX ODEON CORPORATION ANNOUNCES 1993 YEAR END RESULTS
CINEPLEX ODEON CORPORATION ANNOUNCES 1994 SECOND QUARTER RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters