Cinemark Holdings, a motion picture exhibitor, repriced a term loan under its senior secured credit facility.
The company’s credit agreement was amended to reduce the rate at which the term loan bears interest, which will now be at either a base rate plus 1.25% or LIBOR+2.25%, as elected by the company in accordance with the credit agreement. According to a related 8-K filing, Barclays Bank served as administrative agent.
The repricing represents an annual cash interest savings of 50 basis points or approximately $3.3 million per year. No other changes were made to the credit agreement.
“We remain dedicated to prudent capital planning and we are thrilled that favorable market conditions have provided us the opportunity to further reduce the rate of our term loan to one of the lowest coupons among high-yield issuers, which will generate meaningful savings for our company,” said Sean Gamble, Cinemark’s chief financial officer.