Member Info for FunInvestor

Yes, there seems to have been either some misunderstanding in full or part of today's RNS or just misleading by some bonkers.

From the release:

Further Liquidity and Covenant Flexibility Secured



Following the opening of all cinemas in June 2021, Cineworld is pleased to announce it secured $200m of incremental loans maturing in May 2024 from a group of its existing lenders. The New Debt Facility does not have a MATERIAL IMPACT on the Group's WEIGHTED AVERAGE COST OF DEBT.

Clearly states it does not have a MATERAIL impact (but that therefore infers it does have some) on the WEIGHTED AVERAGE COST OF DEBT.

On the basis this is a $200m incremental funding then OFF COURSE as part of a now c. $5bn debt it won't MATERIALLY impact the average.

It clearly costs additional money.
It is clearly inferred it is at higher than the average interest rate (from memory c. 4.5%)
It is not unreasonable to expect it to be at or around most recent rates (company loans etc can be seen with their term, rates etc from company reports) and the statement from the company points towards a rate higher than the average otherwise it wouldn't note it doesn't MATERIALLY impact the overall debt cost average.

It is NOT free money.
It DOES increase the financing costs.
It is from current lenders as was stated with the most recent debt prior to this and again this would strongly lead to a reasonable conclusion on terms not suddenly being rates of a few years ago.

Phew saw your post just in time sammy, thanks.
;-)
Have a good weekend all :-)

£6 open on Monday, let's see if my market control works both ways.

Too much ridiculous with your post SmallT to respond any further.

SmallT
If refering to me when talking about the cash burn (clearly you are) then don't make up my reasons for discussing it or then go on to make up a false reality.

Which part of the company now taking on further expensive debt for the second time since it was already supposed to have enough liquidity do you not fully understand?

Do you not recall that at the point of taking on last additional debt it was seen to be enough to see them through this year and beyond with the company's base case assumptions.

Now do you think by taking on this debt it means:
1 The company was performing on or ahead of those base case assumptions.
2. The company was running highly cash positive since reopening.
3. The company already still had sufficient flexibility in its liquidity headroom to be confident of seeing it to stage where it expects to be running at whatever forward levels of admissions will be.

Having been able to secure the further debt and continued support from lenders (at a cost) and the covenant amendments (wouldn't be required if liquidity was absolutely no issue and were 100% back to admission levels) is good news for the company and shareholders.

That is different from considering it good news the company required to or at least took judgement it felt on balance was worth doing.

Hey lads, you all still alive?
Hope all outside currently **** investments is going well for you guys :-)

Yeah "forked tongues" clearly got caught out big time :P

Try being an adult.

Insider I am a very smiley person :-)
Falsifying the whole picture of a share investment won't make me smile any more ;-)

I wouldn't get too ahead of ourselves just yet.
This update mainly only extends the company's runway a number of months.
It still requires audience numbers to grow, product levels to grow and show ability to pay a a now even further increased high level of debt.

Shorters (I think) will still view they have a reasonable chance at this time. (I hope time will prove them wrong)

I prefer Mooky does this day after day i.e. run the business through the toughest times it has faced.
Building a strong supportive relationship with its lenders giving the company a route to a (hopefully) prosperous future while (mostly) not diluting shareholder value.
Rather that than spending time with daily updates every time SP moves a couple percentage points for the small investors on a bulletin board ;-)

I hope they make a push on more of these types of immersive entertainment as we go forward.

https://www.cineworld.co.uk/static/en/uk/blog/disney-jungle-cruise-4dx

Having been to honey I shrink the audience at Disney about 25 years ago I am surprised more advances haven't been made in that time.
That did the air jets around your seats and 3D , think smells pumped in also

https://www.screendaily.com/news/exhibitor-heads-issue-rallying-cry-ahead-of-cinemacon-as-delta-variant-spreads/5162029.article

Maybe less of an indicator than AMC or Cinemark, but we have already had IMAX.

Both of above also have their differences on trading during recent period to Cine.

We have a reasonable idea from Box office totals already, will any of the businesses have made significant change to their overall share of the pot from previous !?

https://variety.com/2021/film/news/imax-earnings-f9-quiet-place-2-1235028694/

Thanks for your concern insider.
All joking aside I have enough friends and enjoy each others company when we wish.

Regards meeting someone etc that assumes everyone in the world has to live as a couple and being single is "wrong"

Anyway...Cineworld :-)
Another low volume day and back to pretty flat SP (non) movement.

Single people supposed to hide in a darkened room and never go out then.
Thanks for advice Walter Mitty.

Since reopening I will be pleasantly surprised and happy of we have averaged much over 50%.
I hope (maybe even expect) we are currently trading a bit above that, but for May/June I expect we may not have been.

Based on USA being by far our main market and the box office totals for those months (realising some theatres from other companies may not have been open and such).

Is that boredom the reason for you making stuff up at times? ;-)

1st doses stuck around 88% for a period of time now PW.
2nd doses slowly creeping up. 70 odd %

https://finance.yahoo.com/news/10-most-shorted-stocks-reddit-011822797.html

.... and from imax.

https://variety.com/2021/film/news/imax-earnings-f9-quiet-place-2-1235028694/

Good piece on a possible future for cinemas.
As some here have briefly discussed before.
The screens are there and watching on them is far more of an event than home viewing ever will be.
Cinemas already made some moves into these areas but possibly much much more in future.
Sporting events, concerts, gaming, even some of the more successful streamers content.

https://www.ft.com/content/b92fc25b-1c15-4980-88d2-b1b6daf70271