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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 05/10/2016
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Table of Contents

Financing Activities

Cash used for financing activities was $22.7 million for the three months ended March 31, 2016 compared to $37.1 million for the three months ended March 31, 2015. Financing activities for the three months ended March 31, 2016 included the redemption of Cinemark USA, Inc.’s $200.0 million 7.375% Senior Subordinated Notes with proceeds from the issuance of a $225.0 million add-on to Cinemark USA, Inc.’s existing 4.875% Senior Notes. See Note 4 to our condensed consolidated financial statements.

We, at the discretion of the board of directors and subject to applicable law, anticipate paying regular quarterly dividends on our common stock. The amount, if any, of the dividends to be paid in the future will depend upon our then available cash, anticipated cash needs, overall financial condition, loan agreement restrictions as discussed below, future prospects for earnings and cash flows, as well as other relevant factors.

We may from time to time, subject to compliance with our debt instruments, purchase our debt securities on the open market depending upon the availability and prices of such securities.

Long-term debt consisted of the following as of March 31, 2016 (in millions):

 

Cinemark USA, Inc. term loan

   $ 677.3   

Cinemark USA, Inc. 5.125% senior notes due 2022

     400.0   

Cinemark USA, Inc. 4.875% senior notes due 2023

     755.0   

Other

     5.6   
  

 

 

 

Total long-term debt

   $ 1,837.9   

Less current portion

     8.4   
  

 

 

 

Subtotal long-term debt, less current portion

   $ 1,829.5   

Less: Debt discounts and debt issuance costs

     35.6   
  

 

 

 

Long-term debt, less current portion, net of debt issuance costs

   $ 1,793.9   
  

 

 

 

As of March 31, 2016, Cinemark USA, Inc. had $100.0 million in available borrowing capacity on our revolving credit line.

Contractual Obligations

Due to the redemption of the 7.375% Senior Subordinated Notes due 2021 and issuance of the additional $225.0 million 4.875% Senior Notes (see Note 4 to the condensed consolidated financial statements), which impacted the maturity of and the amount of outstanding long-term debt and related interest rates, we have included below our long-term debt and estimated scheduled interest payments as of March 31, 2016.

 

     Payments Due by Period  
     (in millions)  
     Total      Less Than
One Year
     1—3 Years      3—5 Years      After
5 Years
 

Long-term debt (1)

   $ 1,837.9       $ 8.4       $ 16.8       $ 15.4       $ 1,797.3   

Scheduled interest payments on long-term debt (2)

     546.2         81.8         162.6         161.3         140.5   

 

(1)  Amounts are presented before adjusting for debt issuance costs.
(2)  Amounts include scheduled interest payments on fixed rate and variable rate debt agreements. Estimates for the variable rate interest payments were based on interest rates currently in effect. The average interest rates currently in effect on our fixed rate and variable rate debt are 5.0% and 3.8%, respectively.

Off-Balance Sheet Arrangements

Other than the operating leases and purchase commitments disclosed in our Annual Report on Form 10-K for the year ended December 31, 2015 filed February 24, 2016, we do not have any off-balance sheet arrangements.

Senior Secured Credit Facility

Cinemark USA, Inc. has a senior secured credit facility that includes a seven year $700.0 million term loan and a five year $100.0 million revolving credit line (the “Senior Secured Credit Facility”). On May 8, 2015, Cinemark USA,

 

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