Cinemark Holdings enters agreements to unwind warrants tied to convertible notes

Published 18/08/2025, 13:16
Cinemark Holdings enters agreements to unwind warrants tied to convertible notes

Cinemark Holdings, Inc. (NYSE:CNK), currently trading at $25.62 with a market capitalization of $2.95 billion, announced Monday that it has entered into agreements to unwind and terminate warrant transactions related to its 4.50% Convertible Senior Notes due 2025. The company disclosed the agreements in a filing with the Securities and Exchange Commission. According to InvestingPro data, the company maintains a healthy financial profile with a "GOOD" overall health score, despite recent market volatility.

According to the statement, on August 15, 2025, Cinemark entered into individual warrant unwind and termination agreements with the counterparties involved in the original warrant transactions. These warrant transactions were established in connection with the issuance of the convertible notes and allowed the counterparties to purchase shares of Cinemark’s common stock, subject to certain conditions.

Under the terms of the new agreements, Cinemark will deliver to each counterparty a combination of 50% cash and 50% common stock as consideration for the early termination of the warrants. The final amounts will be determined based on the volume-weighted average price per share of Cinemark’s common stock during a 55 trading day observation period beginning Monday and ending on November 3, 2025. Settlement of the agreements will occur either weekly during the observation period or, in some cases, two business days after the period concludes.

The company stated that the description of the warrant unwind and termination agreements is qualified in its entirety by reference to the full text of the agreements, which were filed as exhibits to the 8-K.

This information is based on a press release statement included in the company’s SEC filing.

In other recent news, Cinemark Holdings reported its second-quarter 2025 earnings, which fell short of Wall Street expectations. The company posted an earnings per share (EPS) of $0.63, missing the forecast of $0.7052 by 10.66%. Revenue also came in slightly below projections at $940.5 million, compared to a forecast of $942.98 million. Benchmark has reiterated a Buy rating and maintained a $35.00 price target on Cinemark stock following the company’s strong second-quarter performance, with adjusted EBITDA of $232 million surpassing the consensus expectation. In contrast, Roth/MKM lowered its price target for Cinemark to $34.00 from $36.00, citing expectations for a softer third-quarter performance but expressing optimism for a strong fourth-quarter rebound. Additionally, Cinemark announced a quarterly cash dividend of $0.08 per share, payable in September to stockholders of record as of August 27, 2025. These developments come as the company navigates its financial landscape with varying analyst perspectives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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