You will be redirected back to your article in seconds

Loews’ lenders agree to relax credit terms

Exhibitor's stock up up 3.4%

Loews Cineplex Entertainment said Thursday it has reached an agreement with its syndicate of lending banks to relax the terms of its revolving credit facility, indicating continued financial pressure as the exhibitor rolls out new theaters.

Loews didn’t provide details, except to note that certain of its financial covenant requirements had been reduced. Wall Streeters said the New York-based chain had rejiggered its debt to cash flow requirement — meaning that it’s now allowed to show less cash flow on the same amount of debt without the banks shutting off the spigot or calling in their loans.

The company, like the rest of the exhibition industry, is feeling the squeeze as it spends heavily on new theaters, which take at least three to six months to become profitable. That means cash outlay isn’t matched by inflow. The pressure on Loews should start to ease up as newer theaters come online and start performing.

Shares up

Loews Cineplex’ shares rose Thursday, closing up 3.4% to $3.81 amid a buoyant market. The stock, and others in the sector, usually move the opposite direction and have been decimated over the past year. Loews shares were trading at nearly $14 last spring.

Shares of Loews competitor AMC Entertainment was also up, rising 2.4% to $5.31.

Carmike Cinemas gained 0.9% to close at $6.88.

While the stocks look cheap, analysts note that it will still take many months for the industry to recover from its frenetic pace of construction over the last several years.

Loews clearly isn’t the only exhib that has issues with its bankers. Rumors continue to circulate that United Artists and Regal Cinemas may file for bankruptcy or otherwise restructure soon.

More Biz

  • RESTRICTION: NO New York or New

    Time's Up to Stage National Walkout to Support Brett Kavanaugh Accuser

    Loews Cineplex Entertainment said Thursday it has reached an agreement with its syndicate of lending banks to relax the terms of its revolving credit facility, indicating continued financial pressure as the exhibitor rolls out new theaters. Loews didn’t provide details, except to note that certain of its financial covenant requirements had been reduced. Wall Streeters […]

  • emma stone sam mendes louis vuitton

    Emma Stone Re-Teams With Sam Mendes for Louis Vuitton Short Film

    Loews Cineplex Entertainment said Thursday it has reached an agreement with its syndicate of lending banks to relax the terms of its revolving credit facility, indicating continued financial pressure as the exhibitor rolls out new theaters. Loews didn’t provide details, except to note that certain of its financial covenant requirements had been reduced. Wall Streeters […]

  • Greg Berlanti, Robbie Rogers49th Anniversary Gala

    Ricky Martin, Greg Berlanti Laud LA LGBT Center's Work in Trump Era at Vanguard Awards

    Loews Cineplex Entertainment said Thursday it has reached an agreement with its syndicate of lending banks to relax the terms of its revolving credit facility, indicating continued financial pressure as the exhibitor rolls out new theaters. Loews didn’t provide details, except to note that certain of its financial covenant requirements had been reduced. Wall Streeters […]

  • Bill Cosby

    Bill Cosby To Learn His Fate at Sentencing Hearing

    Loews Cineplex Entertainment said Thursday it has reached an agreement with its syndicate of lending banks to relax the terms of its revolving credit facility, indicating continued financial pressure as the exhibitor rolls out new theaters. Loews didn’t provide details, except to note that certain of its financial covenant requirements had been reduced. Wall Streeters […]

  • Ozzy Osbourne Drops Lawsuit Against AEG

    Ozzy Osbourne Drops Lawsuit Against AEG

    Loews Cineplex Entertainment said Thursday it has reached an agreement with its syndicate of lending banks to relax the terms of its revolving credit facility, indicating continued financial pressure as the exhibitor rolls out new theaters. Loews didn’t provide details, except to note that certain of its financial covenant requirements had been reduced. Wall Streeters […]

  • Analysis: Sky Win Boosts Comcast as

    Analysis: Sky Win Boosts Comcast as Global Streaming Wars Heat Up

    Loews Cineplex Entertainment said Thursday it has reached an agreement with its syndicate of lending banks to relax the terms of its revolving credit facility, indicating continued financial pressure as the exhibitor rolls out new theaters. Loews didn’t provide details, except to note that certain of its financial covenant requirements had been reduced. Wall Streeters […]

  • Chrissy Teigen Target collection shop online

    Chrissy Teigen's New Target Collaboration to Launch in Late September

    Loews Cineplex Entertainment said Thursday it has reached an agreement with its syndicate of lending banks to relax the terms of its revolving credit facility, indicating continued financial pressure as the exhibitor rolls out new theaters. Loews didn’t provide details, except to note that certain of its financial covenant requirements had been reduced. Wall Streeters […]

More From Our Brands

Access exclusive content