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National Amusements Sets Amended Credit Agreement Without ViacomCBS Stock Sales

ViacomCBS father or mother National Amusements Inc. has set an amended credit score settlement with its lenders that provides the corporate some respiration room in liquidity amid the broader coronavirus-induced financial disaster.

There had been hypothesis that NAI must promote a few of its ViacomCBS holdings after the beating that these shares have taken with a drop of greater than 50% as of earlier this week.

Up to now a few of NAI’s debt covenants have been tied to the worth of its roughly 80% voting curiosity in ViacomCBS, which means {that a} sharp drop within the firm’s share value might drive the Redstone clan that controls NAI to promote shares to lift some fast money to maintain the corporate in keeping with its debt agreements.

NAI on Thursday took the bizarre step of issuing a press release to verify that its settlement had been amended with out the necessity for ViacomCBS gross sales. The amended pact offers NAI entry to a revolving credit score facility of $125 million and what the corporate described as “ample liquidity” and “substantial money reserves” to search out NAI operations which incorporates its Showcase Cinemas exhibition circuit.

“NAI is not going to promote inventory in ViacomCBS and doesn’t intend to pledge further inventory of ViacomCBS, which stays at current ranges,” the corporate stated.

ViacomCBS shares plunged to as little as $10.10 earlier this month amid an across-the-board rout of equities, however the inventory has began to get well over the previous two days together with the broader market.

Extra to return

(Pictured: Shari Redstone)


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