이 기사는 2021년 04월 15일 08시11분 thebell에 표출된 기사입니다

Megabox JoongAng, one of the major cinema chains in South Korea, has raised 30 billion won ($26.8 million) in a private bond sale, with optimism growing over a rebound in the theater market as the Covid-19 vaccines roll out.

The two-year bonds were issued at 3%, with Hanyang Securities acting as the lead underwriter. The bond sale was structured for the brokerage firm to buy the entire offering before issuing short-term notes backed by the bonds.

The sale comes after Megabox JoongAng returned to the corporate bond market in more than a year by selling 20 billion won worth of securitized bonds last month.

The theater chain’s recent bond sales have been met with sufficient demand from investors thanks to optimism over the vaccine rollout, which could lead to a resurgence in theater attendance and an improvement in the company’s financial position.

Megabox JoongAng, formerly part of Orion Group, was founded in 1999. It was acquired by J Contentree and then was merged with the content company’s cinema chain Cinus in 2011. It has 50 theaters nationwide, with the third-largest market share behind CJ CGV and Lotte Cinema.

Like other movie theaters around the country, Megabox JoongAng was hit hard by the pandemic last year. It recorded an operating loss of 68.2 billion and net loss of 65.5 billion won on revenue of 104.5 billion won, which was down 68% year-on-year.

Megabox JoongAng was assigned a credit rating of BBB+ with a negative outlook by KIS Rating and Korea Rating. The local credit agencies viewed the collapsing box-office demand that continues to hurt the company’s financial condition as credit negative. The theater chain also faces challenges in the long term as more people watch movies on online streaming services and digital TVs.

“The company’s operating performance is unlikely to rebound in the near term, meaning the company is unlikely to reduce its financial burdens without an improvement in non-operating items,” said an official at KIS Rating. (Reporting by Su-jeong Kim)