Knoxville, Tenn.-based Regal, said it’s completed a $250 million capital raise to improve and digitally enhance its theaters as the box office rebounds. Construction has started with over 30 locations to be completed in 2025.
The upbeat news comes as Regal’s parent Cineworld, which emerged from bankruptcy last summer, is facing the tough decision of selling theaters in its UK home market.
“With the strong support from our existing investors and real estate partners, Regal is well positioned to invest in growth opportunities with highly accretive investments including brand-new luxury recliners in the United States and digital enhancements for our loyal customers,” said CFO Thomas Song. “As we identify theatres for these improvements, we encourage our landlords to also reach out with interest for their respective locations.”
The capital raise, which was offered to Regal’s current shareholders and well subscribed, will also be used to upgrade the exhibitor’s digital channels including its website and app.
Regal’s circuit includes 425 theaters (5,774 screens) in 41 states, DC and Guam.
Cineworld, the world’s second largest cinema operator after AMC, has been exploring options for its UK business that could include a potential sale or restructuring. It enlisted AlixPartners, which helped its lenders navigate bankruptcy, as consultant and is said to have contacted prospective bidders. It’s not clear where that process stands. The company, which was hard hit when Covid closed theaters, used to be publicly traded in the UK but was taken private out of Chapter 11 by a consortium of its lenders.