Cinemark USA, Inc. — Moody’s assigns Caa1 rating to Cinemark’s new senior notes

Rating Action: Moody’s assigns Caa1 rating to Cinemark’s new senior notesGlobal Credit Research – 04 Mar 2021Approximately $405 million of new debt ratedNew York, March 04, 2021 — Moody’s Investors Service (“Moody’s”) assigned a Caa1 rating to Cinemark USA, Inc.’s (“Cinemark USA”) proposed $405 million 5-year senior notes offering. Cinemark USA’s B3 Corporate Family Rating (CFR), B3-PD Probability of Default Rating (PDR), Ba3 senior secured bank credit facilities rating, Ba3 senior secured notes rating, Caa1 senior unsecured notes rating and negative outlook remain unchanged.Cinemark USA is a wholly-owned subsidiary of Cinemark Holdings, Inc. (“Cinemark” or the “company”) and its ratings derive support from the parent, which is the financial reporting entity. Proceeds will be used to fully redeem the $400 million 5.125% senior notes due 2022 via a tender offer and pay transaction-related fees, including the tender premium. The new senior notes will rank pari passu with Cinemark USA’s existing senior notes and contain the same joint and several upstream guarantees on an unsecured basis from certain Cinemark USA operating subsidiaries.Following is a summary of today’s rating action:Assignment:…Issuer: Cinemark USA, Inc.$405 Million Senior Unsecured Notes due 2026, Assigned Caa1 (LGD5)The assigned rating is subject to review of final documentation and no material change to the size, terms and conditions of the transaction as advised to Moody’s.RATINGS RATIONALEMoody’s…