Cinemark Holdings, Inc. (NYSE:CNK), whose stock has delivered a142% return year-to-date, and its subsidiary Cinemark USA, Inc. have entered into a significant amendment to their existing credit agreement, reducing the interest rates on their term loans.
This financial maneuver is expected to provide Cinemark with a more favorable debt servicing scenario for its $3.48 billion total debt, potentially freeing up cash flows that could be utilized for other operational or strategic initiatives.
In other recent news, Cinemark Holdings, Inc. reported record third-quarter revenue and adjusted EBITDA, primarily due to the success of films such as "Inside Out 2" and "Deadpool & Wolverine," and growth in the North American box office. The company's Q3 revenue reached $922 million, marking a 12% increase year-over-year, while the adjusted EBITDA for the quarter was $221 million, also a 12% increase from the previous year. Financial analyst firm Benchmark upgraded Cinemark's price target to $35, acknowledging the company's impressive Q3 performance.
Looking ahead, Cinemark anticipates a strong Q4, buoyed by major film releases such as "Wicked" and "Gladiator II." The company also has a positive outlook for 2025, with a robust film slate including titles like "Moana 2," "Mufasa," and "Sonic the Hedgehog 3."
Despite weaker film performance in Latin America and ongoing inflationary pressures, Cinemark ended Q3 with $928 million in cash after successfully refinancing its debt.
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