The Firm recently represented the initial purchasers in connection with Cinemark Holdings, Inc.’s (“Cinemark”) private placement of $460 million aggregate principal amount of 4.5% Convertible Senior Notes due 2025, which includes the full exercise of the initial purchasers’ option to purchase additional notes. A portion of the net proceeds was used to pay the cost of the convertible note hedge transactions described below (after such cost was partially offset by the proceeds from the warrant transactions described below). Cinemark intends to use any remaining net proceeds from the offering for general corporate purposes, which may include repaying outstanding amounts under the revolving credit line of the amended and restated senior secured credit facility of Cinemark’s wholly-owned subsidiary, Cinemark USA, Inc.
In addition, the Firm represented certain of the initial purchasers and/or their respective affiliates in connection with the convertible note hedge and warrant transactions relating to the common stock of Cinemark, entered into concurrently with the offering of the Notes.
Cinemark operated a total of 534 theaters and 5,977 screens in the United States and Latin America as of June 30, 2020.
The Simpson Thacher team for the transaction included Ken Wallach, David Azarkh, Roxane Reardon, Jean Park and Claire DiMario (Capital Markets); Jonathan Lindabury, Caitlin Wood and Nathan Utterback (Derivatives); Marcy Geller and Brian Mendick (Tax); Justin Lungstrum, Stephanie Rotter and Michael Brennan (Credit); Jennie Getsin (Blue Sky); Jeanne Annarumma and Monisha Bhayana (Executive Compensation and Employee Benefits); Timothy Gallagher (Real Estate); and Timothy Mulvihill (Environmental).