S&P rates Cineworld loans B+, B-

S&P said it assigned a B+ rating and recovery rating of 3 to Cineworld Group plc’s proposed $1.932 billion senior secured term loan due in 2027 and an issue rating of B- and 6 recovery rating to the proposed $343 million senior unsecured bridge loan.

Proceeds will be used to finance the acquisition of Cineplex Inc.

“We assigned our ratings to the proposed debt based on our analysis of the combined group, assuming that the acquisition completes and including Cineplex pro forma from the beginning of the year. We estimate that in 2020 the combined group’s adjusted leverage will increase to about 5x from the 4.6x in 2019 that we forecasted for Cineworld on a stand-alone basis,” said S&P in a press release.

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