v3.23.1
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES
3 Months Ended
Mar. 31, 2023
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES  
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES

NOTE 6—CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES

A summary of the carrying value of corporate borrowings and finance lease liabilities is as follows:

(In millions)

    

March 31, 2023

    

December 31, 2022

First Lien Secured Debt:

Senior Secured Credit Facility-Term Loan due 2026 (7.684% as of March 31, 2023 and 7.274% as of December 31, 2022)

$

1,920.0

$

1,925.0

12.75% Odeon Senior Secured Notes due 2027

400.0

400.0

7.5% First Lien Notes due 2029

950.0

950.0

Second Lien Secured Debt:

10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026

1,190.4

1,389.8

Subordinated Debt:

6.375% Senior Subordinated Notes due 2024 (£4.0 million par value as of March 31, 2023)

4.9

4.8

5.75% Senior Subordinated Notes due 2025

98.3

98.3

5.875% Senior Subordinated Notes due 2026

51.5

55.6

6.125% Senior Subordinated Notes due 2027

125.5

125.5

Total principal amount of corporate borrowings

$

4,740.6

$

4,949.0

Finance lease liabilities

 

58.5

 

58.8

Deferred financing costs

(36.3)

(37.9)

Net premium (1)

177.7

229.7

Total carrying value of corporate borrowings and finance lease liabilities

$

4,940.5

$

5,199.6

Less:

Current maturities corporate borrowings

(20.0)

 

(20.0)

Current maturities finance lease obligations

(6.5)

(5.5)

Total noncurrent carrying value of corporate borrowings and finance lease liabilities

$

4,914.0

$

5,174.1

(1)The following table provides the net premium (discount) amounts of corporate borrowings:

March 31,

December 31,

(In millions)

2023

2022

10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026

$

212.0

$

265.5

Senior Secured Credit Facility-Term Loan due 2026

(4.4)

(4.8)

12.75% Odeon Senior Secured Notes due 2027

(30.0)

(31.1)

6.375% Senior Subordinated Notes due 2024

 

0.1

 

0.1

$

177.7

$

229.7

The following table provides the principal payments required and maturities of corporate borrowing as of March 31, 2023:

Principal

Amount of

Corporate

(In millions)

    

Borrowings

Nine months ended December 31, 2023

$

15.0

2024

24.9

2025

 

118.3

2026

 

3,106.9

2027

 

525.5

2028

 

Thereafter

 

950.0

Total

$

4,740.6

Debt Repurchases

The below table summarizes the cash debt repurchase transactions during the three months ended March 31, 2023, including the related party transactions with Antara, which became a related party on February 7, 2023:

Aggregate Principal

Reacquisition

Gain on

Accrued Interest

(In millions)

Repurchased

Cost

Extinguishment

Paid

Related party transactions:

Second Lien Notes due 2026

$

41.9

$

24.4

$

25.3

$

0.7

5.875% Senior Subordinated Notes due 2026

4.1

1.7

2.3

0.1

Total related party transactions

46.0

26.1

27.6

0.8

Non-related party transactions:

Second Lien Notes due 2026

57.5

30.4

37.5

1.1

Total non-related party transactions

57.5

30.4

37.5

1.1

Total debt repurchases

$

103.5

$

56.5

$

65.1

$

1.9

Financial Covenants

The Company currently estimates that its existing cash and cash equivalents will be sufficient to comply with the minimum liquidity covenant requirement under its Senior Secured Revolving Credit Facility, currently and through the next twelve months. The Company entered the Ninth Amendment to Credit Agreement pursuant to which the requisite revolving lenders party thereto agreed to extend the fixed date for the termination of the suspension period for the financial covenant (the secured leverage ratio) applicable to the Senior Secured Revolving Credit Facility from March 31, 2021 to March 31, 2022, which was further extended by the Eleventh Amendment to Credit Agreement from March 31, 2022 to March 31, 2023 and further extended by the Twelfth Amendment to Credit Agreement from March 31, 2023 to March 31, 2024, in each case, as described, and on the terms and conditions specified, therein. The Company is currently subject to a minimum liquidity requirement of $100 million as a condition to the Extended Covenant Suspension Period. The current maturity date of the Senior Secured Revolving Credit Facility is April 22, 2024; since the financial covenant applicable to the Senior Secured Revolving Credit Facility is tested as of the last day of any fiscal quarter for which financial statements have been (or were required to have been) delivered, the financial covenant has been effectively suspended through maturity of the Senior Secured Revolving Credit Facility.