S&P gives Cinemark notes B

S&P said it assigned B issue-level and 4 recovery ratings to the proposed $765 million of senior unsecured notes due 2028 issued by Cinemark Holdings Inc.'s operating subsidiary Cinemark USA Inc. The 4 recovery rating indicates expectations for average recovery (30%-50%; rounded estimate: 45%) in default.

The company will use the proceeds to refinance its $755 million of senior unsecured notes due 2023. Separately, Cinemark reported it extended the maturity of its revolver to 2024 from 2022.

“Our B issuer credit rating and negative outlook on Cinemark USA are unaffected because the transaction is leverage neutral, reduces its near-term refinancing risk, and we do not expect it to have a material effect on the company's interest burden,” S&P said in a press release.

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