StockMarketWire.com - Cineworld completed an additional sale and leaseback transaction relating to 18 US-based multi-screen cinemas totalling 255 screens for $270m.

The transaction involved Cineworld selling the cinemas to a subsidiary of EPR Properties for $270m and leasing them back under 15-year leases on customary terms.

As previously announced, the company plans to use half of $556.3m proceeds to reduce gross debt and pay a special dividend in the second half of the year.

The cinemas had a book value of $230m at the end of 2018 including an uplift on revaluation as part of the acquisition of Regal and generated earnings (EBITDA) of $42.5m in 2018.

The transaction was consistent with Cineworld's existing business model of operating a predominantly leasehold estate and long-term strategy of crystallising value for its shareholders.




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