Cinemark Holdings, a publicly traded movie house operator, completed a $660 million fundraising from a joint venture between AMC and Regal Entertainment Group, led by JPMorgan and Blackstone Advisory Partners. The company’s backers, Madison Dearborn Capital Partners, Syufy Enterprises LP Mitchell Special Trust, will sell some of their shares, leaving Madison Dearborn with a 32.1% stake, Syufy Enterprises with 5.3% and the Mitchell Special Trust 4.9%.
Press release: Cinemark Holdings, Inc. (NYSE: CNK), the second largest motion picture exhibitor in the world in terms of both attendance and the number of screens in operation, today announced the completion of the Digital Cinema Implementation Partners, LLC (“DCIP”) financing transactions, which are expected to cover the cost of conversion for a large portion of the Company’s U.S. screens. DCIP is a non-consolidated investment of Cinemark.
“With the funding of DCIP now a reality, we are excited about accelerating Cinemark’s digital projector installations. Our immediate focus will be on 3D deployments throughout our circuit expanding our worldwide 3D footprint from approximately 400 screens currently to between 1,100 and 1,300 screens by year end. Following the 3D roll-out, we will begin the full digital conversion of these theatres,” stated Cinemark Chief Executive Officer Alan Stock.
Stock added, “Our digital conversions, including our 3D and XD Extreme Digital auditoriums, reflect a commitment to bringing patrons a dynamic theatre entertainment experience. Cinemark’s 3D and digital conversion plans align us well with Hollywood’s growing slate of 3D releases. Our operations will also benefit from the significant flexibility afforded by digital, while opening the door to an expanding range of alternative content, such as major sporting and entertainment events that will allow us to optimize utilization of our theater base.”
Cinemark intends to digitize its worldwide circuit. The full conversion to digital projection will provide the Company with the flexibility to easily add additional Real D 3D technology to its digital projectors to meet future increases in demand. In addition, Cinemark presently has 21 XD Extreme Digital auditoriums, including one in Mexico, with plans to add approximately 25 or more XD screens throughout the remainder of 2010.
About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 424 theatres with 4,896 screens in 39 U.S. states, one Canadian province, Brazil, Mexico and 11 other Latin American countries as of December 31, 2009. For more information go to www.cinemark.com.
About Digital Cinema Implementation Partners
Digital Cinema Implementation Partners, LLC is a joint venture owned equally by exhibition industry leaders AMC Entertainment Inc., Cinemark Holdings, Inc. and Regal Entertainment Group, representing more than 14,000 screens in the United States and Canada. Formed in February, 2007 to facilitate the roll-out of a digital cinema infrastructure in the United States and Canada, the company is headquartered in Mahwah, NJ with offices in Minneapolis, MN and Denver, Co.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The “forward-looking statements” include our current expectations, assumptions, estimates and projections about our business and our industry. They include statements relating to future revenues, expenses and profitability, the future development and expected growth of our business, projected capital expenditures, attendance at movies generally or in any of the markets in which we operate, the number or diversity of popular movies released and our ability to successfully license and exhibit popular films, national and international growth in our industry, competition from other exhibitors and alternative forms of entertainment and determinations in lawsuits in which we are defendants.You can identify forward-looking statements by the use of words such as “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future” and “intends” and similar expressions which are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. In evaluating forward-looking statements, you should carefully consider the risks and uncertainties described in the “Risk Factors” section or other sections in the Company’s Annual Report on Form 10-K filed March 10, 2010 and quarterly reports on Form 10-Q. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.