Cineplex Announces Amendment to Credit Facility

Cineplex Inc. ("Cineplex" or the "Company") (TSX: CGX) announced today that it has entered into a third amendment (the "Third Amendment") to the seventh amended and restated credit agreement with its lenders. The Third Amendment provides for, among other things, the continued suspension of financial covenant testing until the fourth quarter of 2021 upon certain conditions being met, including completion of a minimum $200 million financing by the Company of second lien secured notes on or prior to March 31, 2021 with a maturity of at least five years. Pursuant to the terms of the Third Amendment, the net proceeds received from such offering of second lien secured notes must be used to repay indebtedness under the Company's credit facilities, of which $100 million would constitute a permanent repayment.

Cineplex also announced today that it has entered into an engagement letter with BMO Capital Markets and Scotiabank in connection with a proposed private placement offering (the "Note Offering") of second lien secured notes (the "Notes"), following the release of its Fourth Quarter and Year End 2020 results on Thursday, February 11, 2021 and subject to market and other conditions. Cineplex intends to use the net proceeds from the proposed Note Offering, if completed, to repay indebtedness under its credit facilities and provide incremental liquidity as Cineplex manages through this transitional period to more normalized market conditions.

"With the vaccine roll-out underway, our team is looking forward to reopening our circuit of theatres and entertainment venues across Canada and currently expecting to see a return to more normal operating conditions in the second quarter. We know Canadians will be looking for safe and affordable entertainment choices coming out of the pandemic, and our teams' primary focus right now is how best to leverage and monetize that inevitable surge of interest come spring," said Ellis Jacob, President and CEO, Cineplex. "With the announcement today, we remain confident as ever in our strategy and financial outlook as well as the ability of the industry as a whole to not only recover, but thrive."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in Canada, the United States or any other jurisdiction.

About Cineplex

Cineplex (TSX: CGX) is a top-tier Canadian brand that operates in the Film Entertainment and Content, Amusement and Leisure, and Media sectors. A leading entertainment and media company, Cineplex welcomes millions of guests annually through its circuit of theatres and location based entertainment venues across the country. In addition to being Canada's largest and most innovative film exhibitor, Cineplex also operates successful businesses in digital commerce (CineplexStore.com), food service, alternative programming (Cineplex Events), cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media) and amusement solutions (Player One Amusement Group). Additionally, Cineplex operates Canada's favourite destination for 'Eats & Entertainment' (The Rec Room) and entertainment complexes specially designed for teens and families (Playdium). Cineplex is a joint venture partner in SCENE, Canada's largest entertainment loyalty program.

Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs approximately 13,000 people in its offices across Canada and the United States. To learn more visit Cineplex.com or download the Cineplex App.

SOURCE Cineplex

For further information: Media Relations contact: Sarah Van Lange, Executive Director, Communications, Community and Social Media, PressRoom@Cineplex.com; Investor Relations contact: Melissa Pressacco, Senior Manager, Communications and Investor Relations, InvestorRelations@Cineplex.com