Obligation Cinepolis 2.75% ( BE0002660414 ) en EUR

Cinepolis

97.6 % ▼

Belgique

BE0002660414 ( en EUR )

2.75% par an ( paiement annuel )

17/12/2026

Prospectus brochure de l'obligation Kinepolis BE0002660414 en EUR 2.75%, échéance 17/12/2026

18/12/2026 ( Dans 258 jours )

Kinepolis est une société de cinéma internationale exploitant des cinémas multiplex dans plusieurs pays européens, principalement en Belgique, aux Pays-Bas, en France, en Espagne, au Luxembourg, en Pologne, en Suisse, en Allemagne et au Royaume-Uni.

L'Obligation émise par Cinepolis ( Belgique ) , en EUR, avec le code ISIN BE0002660414, paye un coupon de 2.75% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 17/12/2026

Kinepolis Group NV
(Incorporated as a limited liability company (naamloze vennootschap/société anonyme) in Belgium)
225,000,000 2.75 per cent. fixed rate bonds due 18 December 2026
Gross actuarial yield: 2.602 per cent. (on an annual basis)
Issue Price: 101 per cent. - ISIN Code: BE0002660414 - Common Code: 202145167
(the "Bonds")
Issue Date: 5 July 2019
Before making any investment decision, potential investors are invited to read the Information Memorandum
in its entirety and in particular Part I (Risk Factors) on pages 7 to 17 of the Information Memorandum. Copies
of the Information Memorandum can be obtained at the registered seat of the Issuer and on the registered
seat of each of the Joint Bookrunners. These Bonds constitute debt instruments. An investment in the Bonds
involves risks. By subscribing to the Bonds, investors lend money to the Issuer who undertakes to pay interest
on an annual basis and to reimburse the nominal amount on the Maturity Date. In case of bankruptcy of, or
default by, the Issuer, investors may not recover the amounts they are entitled to and risk losing their
investment partially or entirely.
Coordinator
Joint Bookrunners
Information Memorandum dated 27 June 2019.

Kinepolis Group NV, a limited liability company (naamloze vennootschap/société anonyme) incorporated under
Belgian law, having its registered office at Eeuwfeestlaan 20, 1020 Brussels, Belgium and registered with the
Crossroads Bank for Enterprises under number 0415.928.179, enterprise court of Brussels (the "Issuer" or
"Kinepolis") intends to issue the Bonds for an aggregate principal amount of 225,000,000. The Bonds will
bear interest at the rate of 2.75 per cent. per annum (the "Interest"). Interest on the Bonds shall be payable
annually in arrear on 18 December in each year (each an "Interest Payment Date"). The first Interest Payment
Date for the Bonds is 18 December 2019 (the "Bonds First Interest Payment Date"). The Bonds will mature
on 18 December 2026 (the "Maturity Date"). All references in this Information Memorandum (as defined
below) to "Kinepolis Group" refer to the Issuer together with its subsidiaries (within the meaning of the
Belgian Companies Code).
KBC Bank NV (having its registered office at Havenlaan 2 1080 Brussels, Belgium) is acting as coordinator
(the "Coordinator") and Belfius Bank SA/NV (having its registered office at Karel Rogierplein 11, 1210
Brussels, Belgium), BNP Paribas Fortis SA/NV (having its registered office at Warandepark 3, 1000 Brussels,
Belgium), ING Bank N.V., Belgian Branch (having its registered office at Marnixlaan 24, 1000 Brussels,
Belgium) and KBC Bank NV are acting as joint bookrunners (together the "Joint Bookrunners" and each a
"Joint Bookrunner") for the purpose of the offer of the Bonds (the "Offer").
Application has been made to Euronext Brussels for the Bonds to be admitted to trading on the multilateral
trading facility organised by Euronext Brussels ("Euronext Growth Brussels"). References in this Information
Memorandum to the Bonds being "listed" (and all related references) shall mean that the Bonds have been
admitted to trading on Euronext Growth Brussels.
The denomination of the Bonds shall be 100,000 and integral multiples thereof (the "Denomination"). The
Issuer and the Bonds do not have a credit rating.
This information memorandum dated 27 June 2019 (the "Information Memorandum") intends to provide the
information with regard to the Issuer and the Bonds, which, according to the particular nature of the Issuer and
the Bonds, is necessary to enable investors to make an informed assessment of the rights attaching to the Bonds
and of the assets and liabilities, financial position, profit and losses and prospects of the Issuer.
This Information Memorandum does not comprise a prospectus for the purpose of Article 20 of the Belgian law
of 16 June 2006 on public offers of investment instruments and admission of investment instruments to trading
on regulated markets (as amended or superseded), nor for the purpose of Article 3 of Directive 2003/71/EC (as
amended or superseded) or an information note for the purpose of Article 11 of the Belgian law of 11 July 2018
on the offer of investment instruments to the public and the admission of investment instruments to trading on
a regulated market.
The Bonds will be issued in dematerialised form (gedematerialiseerd/dématérialisé) in accordance with the
Belgian Companies Code (Wetboek van Vennootschappen/Code des Sociétés), as amended or superseded (the
"Belgian Companies Code") and cannot be physically delivered. The Bonds will be represented by book-
entries in the records of the Securities Settlement System itself or any authorised financial intermediary
institution entitled to hold NBB accounts on behalf of their customers with the Securities Settlement System (a
"Participant") or sub-Participants of the Securities Settlement System. Access to the Securities Settlement
System is available through those of its Participants whose membership extends to securities such as the Bonds.
Participants include certain banks, stockbrokers (beursvennootschappen/sociétés de bourse), Euroclear Bank
SA/NV ("Euroclear"), Clearstream Banking A.G. ("Clearstream"), SIX SIS, INTERBOLSA and Monte
Titoli. Accordingly, the Bonds will be eligible for clearance through and will therefore be accepted by Euroclear,
Clearstream, SIX SIS, INTERBOLSA and Monte Titoli. Investors who are not Participants, can hold their
Bonds within securities accounts in Euroclear, Clearstream, SIX SIS, INTERBOLSA, Monte Titoli or any other
Participant.
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Unless otherwise stated, capitalised terms used in this Information Memorandum have the meanings set forth
in this Information Memorandum. Where reference is made to the "Terms and Conditions of the Bonds" or
to the "Conditions", reference is made to the Terms and Conditions of the Bonds as set out in Part III (Terms
and Conditions of the Bonds).
An investment in the Bonds involves risks. Potential investors should take note of Part I (Risk Factors) on page
7 to 17 of the Information Memorandum to understand which factors may affect the Issuer's ability to fulfil its
obligations under the Bonds.
RESPONSIBLE PERSON
The Issuer, having its registered office at Eeuwfeestlaan 20, 1020 Brussels, Belgium and correspondence
address at Moutstraat 132-146, 9000 Ghent, Belgium (the "Responsible Person") accepts responsibility for the
Information Memorandum and any supplements of the Information Memorandum.
To the best of the knowledge and belief of the Issuer, having taken all reasonable care to ensure that such is the
case, the information contained in this Information Memorandum is in accordance with the facts and contains
no omissions likely to affect its import.
OFFER OF THE BONDS
This Information Memorandum does not constitute an offer to sell or the solicitation of an offer to buy the
Bonds in any jurisdiction to any person to whom it is unlawful to make the offer or solicitation in such
jurisdiction. The distribution of this Information Memorandum and the offer or sale of Bonds may be restricted
by law in certain jurisdictions. The Issuer and the Joint Bookrunners do not represent that this Information
Memorandum may be lawfully distributed, or that the Bonds may be lawfully offered, in compliance with any
applicable registration or other requirements in any such jurisdiction, or pursuant to an exemption available
thereunder, or assume any responsibility for facilitating any such distribution or offering. In particular, no action
has been taken by the Issuer or the Joint Bookrunners which is intended to permit a public offering of the Bonds
or the distribution of this Information Memorandum in any jurisdiction where action for that purpose is required.
Accordingly, no Bonds may be offered or sold, directly or indirectly, and neither this Information Memorandum
nor any advertisement or other offering material may be distributed or published in any jurisdiction, except
under circumstances that will result in compliance with any applicable laws and regulations. Persons into whose
possession this Information Memorandum or any Bonds may come must inform themselves about, and observe,
any such restrictions on the distribution of this Information Memorandum and the offering and sale of Bonds.
This Information Memorandum is to be read in conjunction with all the documents which are incorporated
herein by reference (see Part II (Documents Incorporated by Reference) of the Information Memorandum) and
each supplement. This Information Memorandum shall be read and construed on the basis that such documents
are incorporated in and form part of the Information Memorandum.
No person is or has been authorised to give any information or to make any representation not contained in or
not consistent with this Information Memorandum and any information or representation not so contained or
inconsistent with this Information Memorandum or any other information supplied in connection with the
Bonds and, if given or made, such information must not be relied upon as having been authorised by or on
behalf of the Issuer or the Joint Bookrunners. Neither the delivery of this Information Memorandum nor any
sale made in connection herewith shall, under any circumstances, create any implication that:

the information contained in this Information Memorandum is true subsequent to the date of the
Information Memorandum or otherwise that there has been no change in the affairs of the Issuer or its
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subsidiaries since the date hereof or the date upon which this Information Memorandum has been most
recently amended or supplemented;

there has been no adverse change, or any event likely to involve any adverse change, in the condition
(financial or otherwise) of the Issuer or its subsidiaries since the date hereof or, if later, the date upon
which this Information Memorandum has been most recently amended or supplemented; or

the information contained in it or any other information supplied in connection with the Bonds is correct
at any time subsequent to the date on which it is supplied or, if different, the date indicated in the
document containing the same.
Market data and other statistical information used in the Information Memorandum have been extracted from a
number of sources, including independent industry publications, government publications, reports by market
research firms or other independent publications. The Issuer confirms that such information has been accurately
reproduced and that, so far as it is aware, it is able to ascertain from information published by the relevant
independent source, no facts have been omitted which would render the reproduced information inaccurate or
misleading.
The Joint Bookrunners and the Issuer expressly do not undertake to review the condition (financial or otherwise)
of the Issuer and its subsidiaries during the life of the Bonds.
Neither this Information Memorandum nor any other information supplied in connection with the offering of
the Bonds (a) is intended to provide the basis of any credit or other evaluation or (b) should be considered as a
recommendation by the Issuer or the Joint Bookrunners that any recipient of this Information Memorandum or
any other information supplied in connection with the offering of the Bonds should purchase any Bonds. Each
investor contemplating a purchase of the Bonds should make its own independent investigation of the financial
conditions and affairs, and its own appraisal of the creditworthiness, of the Issuer.
Neither this Information Memorandum nor any other information supplied in connection with the offering of
the Bonds constitutes an offer or invitation by or on behalf of the Issuer or the Joint Bookrunners to any person
to subscribe for or purchase any Bonds.
Neither the Joint Bookrunners nor any of their affiliates have authorised the whole or any part of the Information
Memorandum and none of them makes any representation or warranty or accepts any responsibility as to the
accuracy or completeness of the information contained in the Information Memorandum. To the fullest extent
permitted by law, the Joint Bookrunners accept no responsibility whatsoever for the contents of this Information
Memorandum or for any other statement made or purported to be made by the Joint Bookrunners or on their
behalf in connection with the Issuer or the issue and private placement of the Bonds. The Joint Bookrunners
accordingly disclaim all liability, whether arising in tort or in contract or in any other event, in relation to the
information contained or incorporated by reference in this Information Memorandum or any other information
in connection with the Issuer, the offering of the Bonds or the distribution of the Bonds.
The Bonds have not been and will not be registered under the United States Securities Act of 1933, as amended
(the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States. The Bonds
are being offered and sold solely outside the United States to non-U.S. persons in reliance on Regulation S
under the Securities Act ("Regulation S"). Subject to certain exceptions, the Bonds may not be offered, sold or
delivered within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation
S).
For a further description of certain restrictions on the offering and sale of the Bonds and on the distribution of
this document, please refer to Part XI (Subscription and Sale) of the Information Memorandum.
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The Bonds may not be a suitable investment for all investors. In particular, each potential investor may wish to
consider, either on its own or with the help of its financial and other professional advisers, whether it:
(i)
has sufficient knowledge and experience to make a meaningful evaluation of the Bonds, the merits and
risks of investing in the Bonds and the information contained or incorporated by reference in this
Information Memorandum or any applicable supplement;
(ii)
has access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular
financial situation, an investment in the Bonds and the impact the Bonds will have on its overall
investment portfolio;
(iii) has sufficient financial resources and liquidity to bear all of the risks of an investment in the Bonds,
including Bonds where the currency for principal or interest payments is different from the potential
investor's currency;
(iv)
understands thoroughly the terms of the Bonds and is familiar with the behaviour of any relevant
financial markets; and
(v)
is able to evaluate possible scenarios for economic, interest rate and other factors that may affect its
investment and its ability to bear the applicable risks.
Legal investment considerations may restrict certain investments. The investment activities of certain investors
are subject to legal investment laws and regulations, or review or regulation by certain authorities. Each
potential investor should consult its legal advisers to determine whether and to what extent (1) Bonds are legal
investments for it, (2) Bonds can be used as collateral for various types of borrowing and (3) other restrictions
apply to its purchase or pledge of any Bonds. Financial institutions should consult their legal advisors or the
appropriate regulators to determine the appropriate treatment of Bonds under any applicable risk-based capital
or similar rules.
MiFID II product governance / Retail investors, professional investors and eligible counterparties target
market Solely for the purposes of each manufacturer's product approval process, the target market assessment
in respect of the Bonds has led to the conclusion that: (i) the target market for the Bonds is eligible
counterparties, professional clients and retail clients each as defined in the Markets in Financial Instruments
Directive 2014/65/EU (as amended, "MiFID II"), (ii) all channels for distribution of the Bonds to eligible
counterparties and professional clients are appropriate and (iii) the following channels for distribution of the
Bonds to retail clients are appropriate: investment advice, portfolio management and non-advised sales, subject
to the distributor's suitability and appropriateness obligations under MiFID II, as applicable. Any person
subsequently offering, selling or recommending the Bonds (a "distributor") should take into consideration the
manufacturer's target market assessment; however, a distributor subject to MiFID II is responsible for
undertaking its own target market assessment in respect of the Bonds (by either adopting or refining the
manufacturer`s target market assessment) and determining appropriate distribution channels, subject to the
distributor's suitability and appropriateness obligations under MiFID II, as applicable.
All references in this document to "euro", "EUR" and "" refer to the currency introduced at the start of the
third stage of European economic and monetary union pursuant to the Treaty establishing the European
Community, as amended.
This Information Memorandum contains various amounts and percentages which are rounded and, as a result,
when these amounts and percentages are added up, they may not total.
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WARNING
This Information Memorandum has been prepared in connection with the listing of the Bonds on Euronext
Growth Brussels. When potential investors make a decision to invest in the Bonds, they should base this
decision on their own research of the Issuer and the terms and conditions of the Bonds set out in Part III (Terms
and Conditions of the Bonds) of the Information Memorandum, including, but not limited to, the associated
benefits and risks. The investors must themselves assess, with their own advisors if necessary, whether the
Bonds are suitable for them, considering their personal income and financial situation. In case of any doubt
about the risk involved in purchasing the Bonds, investors should abstain from investing in the Bonds.
The summaries and descriptions of legal provisions, taxation, accounting principles or comparisons of such
principles, legal company forms or contractual relationships reported in the Information Memorandum may in
no circumstances be interpreted as investment, legal or tax advice for potential investors. Potential investors are
urged to consult their own advisor, accountant or other advisors concerning the legal, tax, economic, financial
and other aspects associated with the subscription to the Bonds.
FURTHER INFORMATION
For more information about the Issuer, please contact:
Kinepolis Group NV
Nicolas De Clercq
Moutstraat 132-146
9000 Ghent
Belgium
Tel.: + 32 241 00 22
e-mail: [email protected]
investors.kinepolis.com
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TABLE OF CONTENTS
PART I RISK FACTORS........................................................................................................................... 7
PART II DOCUMENTS INCORPORATED BY REFERENCE................................................................ 18
PART III TERMS AND CONDITIONS OF THE BONDS ....................................................................... 20
Schedule 1 FORM OF CHANGE OF CONTROL PUT OPTION NOTICE................................................. 35
Schedule 2 PROVISIONS ON MEETINGS OF BONDHOLDERS............................................................. 37
PART IV CLEARING ............................................................................................................................. 45
PART V DESCRIPTION OF THE ISSUER ............................................................................................. 46
PART VI MANAGEMENT AND CORPORATE GOVERNANCE .......................................................... 63
PART VII REFERENCE SHAREHOLDERS........................................................................................... 66
PART VIII SELECTED FINANCIAL INFORMATION........................................................................... 68
PART IX USE OF PROCEEDS ............................................................................................................... 71
PART X TAXATION............................................................................................................................... 72
PART XI SUBSCRIPTION AND SALE .................................................................................................. 80
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PART I RISK FACTORS
The Issuer believes that the risks described below may affect the Issuer's ability to fulfil its respective
obligations under the Bonds. All of these factors are contingencies which may or may not occur and the Issuer
is not in a position to express a view on the likelihood of any such contingency occurring.
In addition, factors which are material for purposes of assessing the market risks associated with the Bonds are
described below.
The Issuer believes that the factors described below represent the principal risks inherent in investing in the
Bonds, but the inability of the Issuer to pay interest, principal or other amounts on or in connection with the
Bonds may occur for other reasons which may not be considered significant risks by the Issuer based on
information currently available to it or which it may not currently be able to anticipate. The sequence in which
the risk factors are listed is not an indication of their likelihood to occur or of the extent of their commercial
consequences. Prospective investors should also read the detailed information set out elsewhere in this
Information Memorandum or incorporated by reference in this Information Memorandum and reach their own
views prior to making any investment decision and consult with their own professional advisors if they consider
it necessary.
Terms defined in the Conditions shall have the same meaning where used below.
RISK FACTORS IN RELATION TO THE ISSUER
Availability and quality of supplied content
Taking into account that the Kinepolis Group does not produce any content itself (such as movies), it is
dependent on the availability, diversity and quality of movies, as well as the possibility of being able to rent this
content from distributors. The Kinepolis Group endeavours to protect itself wherever possible by maintaining
good long-term relations with the major distributors or producers, by pursuing a content diversification policy
to some extent and by playing a role as distributor in Belgium. The investments in tax shelter projects in
Belgium, i.e., a tax regime encouraging the production of and investments in audio-visual and cinematographic
works should also be viewed in the light of this.
Seasonal effects
The operating revenues of the Kinepolis Group can vary from period to period as the producers and distributors
decide when their movies are released completely independently of the cinema operators and because certain
periods, such as holidays, can traditionally have an impact on visitor numbers. The weather can also play an
important role in the frequency of cinema visits. The Kinepolis Group largely accepts this risk, considering that
the costs of a financial hedging policy would exceed the revenue from it, but endeavours to mitigate the
consequences, among other things by varying its cost structure to a maximum degree.
Competition
The Kinepolis Group's position as a cinema operator is subject to competition, just like every other product or
service for which substitutions exist. The Kinepolis Group's position is impacted by increasing competition
from the other leisure activities, such as concerts and sporting events, that can influence the behaviour of
Kinepolis Group's customers. This competition also comes from the cinemas of other operators both existing
and prospective in the markets where the Kinepolis Group is active and from the increasing distribution and
availability of films and series through online content media, video-on-demand, pay-per-view and other
services. This development can also be influenced by the shortening of the period between the first screening
of a movie in the cinema and its availability through other channels, that is ordinarily observed by the
distributors, as well as the constant technical improvement in the quality of these alternative ways of watching
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movies. In addition to these legal alternatives, the cinema industry also has to deal with illegal downloads. The
Kinepolis Group is working actively together with distributors to agree measures to counter any increasing
illegal sharing of material online.
The Kinepolis Group strives to strengthen its competitive position as a cinema operator by implementing its
strategic vision, which is focused on being able to provide customers with a premium service and film
experience.
Economic situation
Changes to the general, global or regional economic situation or the economic situation in areas where the
Kinepolis Group is active and that can impact consumer behaviour and the production of new movies can have
a negative impact on the operating profits of the Kinepolis Group. The Kinepolis Group endeavours to arm
itself against this threat by being rigorously efficient and closely monitoring and controlling costs and margins.
Changing economic conditions can also increase competitive risks.
Risks arising from acquisitions and growth opportunities
In the event of further growth, competition authorities can impose additional conditions and restrictions with
regard to the growth of the Kinepolis Group (see also `Political, regulatory and competition risks' below). In
addition, certain inherent risks are also associated with growth opportunities, either through acquisition or new-
build projects, that can have a negative impact on the targets of Kinepolis Group. The Kinepolis Group will
thoroughly examine growth opportunities in advance to ensure these risks are properly assessed and, where
necessary, controlled. The proceeds of the Bonds may also be used by the Issuer, amongst others, to finance
acquisitions (see also Part IX (Use of Proceeds) of the Information Memorandum).
Political, regulatory and competition risks
The Kinepolis Group strives to operate within the legal framework at all times. However, additional or amended
legislation, including tax laws, could restrict the Kinepolis Group's growth and/or operations or result in
additional investments or costs. Where possible, the Kinepolis Group actively manages these risks by notifying
the relevant political, administrative or legal bodies of its positions and defending them in an appropriate way.
The Belgian Competition Authority has imposed a number of conditions and restrictions on the Kinepolis
Group, such as the requirement of the prior approval of the Belgian Competition Council for openings of new
cinema complexes with more than seven screens or with more than 1,125 seats. An additional condition
stipulates that new cinema complexes may not be located within a 10 km radius of another Kinepolis complex,
whether existing or to be build (see also `Further developments with regard to easing the behavioural conditions
imposed on the Kinepolis Group' in Part V (Description of the Issuer) of the Information Memorandum).
Technological risks
Cinema has become a highly computerised and automated sector, in which the correct technological choices
and optimal functioning of projection systems, sales systems and other ICT systems are critical in order to be
able to offer optimal service to the customer. The Kinepolis Group tries to manage these risks by closely
following the latest technological developments, regularly analysing system architecture and, where necessary,
optimising and implementing best ICT practices.
Employee risks
As a service company, the Kinepolis Group largely depends on its employees to provide high-quality service.
Hiring and retaining the right managers and employees with the requisite knowledge and experience in all parts
of the Kinepolis Group is therefore a constant challenge. The Kinepolis Group accepts this challenge by offering
attractive terms of employment, good knowledge management and a pleasant working atmosphere. The
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Kinepolis Group measures employee satisfaction on the basis of employee surveys and improves its policies
where necessary. Furthermore, the Kinepolis Group also attaches great importance to the health of its employees
and endeavours to create a risk-free work environment that does no harm to anyone. To this end, and in addition
to compliance with the legal obligations regarding safety and prevention, the Kinepolis Group has taken a
number of further measures, such as the organisation of preventive examinations by the company doctor, the
organisation of evacuation exercises, prevention training, etc.
Customer risks
Health and safety risks for its customers may have an adverse impact on the Kinepolis Group. If any of such
risks materialises, this can lead to complaints or disputes. Poor management of the aforementioned risks may
lead to a decline in customer satisfaction, damage to its reputation and, ultimately, to a fall in visitor numbers.
Furthermore, the likelihood of sanctions and/or administrative fines would also increase considerably.
Risks arising from exceptional events
Events of an exceptional nature, including but not limited to extreme weather, political unrest and terrorist
attacks in a country where the Kinepolis Group is active and that result in material damage to one of its
multiplexes, a fall in the number of customers or a disruption in the delivery of products can have a negative
impact on the activities of the Kinepolis Group. The Kinepolis Group strives to minimise the potential impact
of such risks through a combination of preventive (such as construction decisions, evacuation planning) and
detection measures (such as fire detection systems), and by taking out proper insurance.
Environmental liability and property risks
The property that the Kinepolis Group owns and leases is subject to regulations with regard to environmental
liability and potential property risks. In addition to the above-mentioned measures to control political and
regulatory risks, the Kinepolis Group will take appropriate measures to prevent environmental damage and limit
property risks where necessary.
Use of financial instruments
The Kinepolis Group is exposed to a number of financial risks in its daily operations, such as interest risk,
currency risk, credit risk and liquidity risk.
Derivative financial products concluded with third parties can be used to manage these financial risks. The use
of derivative financial products is subject to strict internal controls and regulations. It is the policy of the
Kinepolis Group not to undertake any trading positions in derivative financial instruments.
The Kinepolis Group manages its debts by combining short-, medium- and long term borrowings. The mix of
debts with fixed and floating interest rates is established at the Kinepolis Group level. At the end of December
2018, the Kinepolis Group's net financial debt was 276,818,000. Interest rate swaps were entered into for
41,600,000 in order to hedge the interest risk on a fixed-term loan that was originally for the same amount.
These interest rate swaps have the same amortisation profile that is applicable to the related fixed-term loan.
The notes to the consolidated financial statements provide a detailed description of how the Kinepolis Group
manages the aforementioned risks.
As the Issuer develops its activities mainly through Subsidiaries, the repayment towards the Bondholders is
structurally subordinated to any other debt at the level of the Subsidiaries of the Issuer
The most important assets of the Issuer are direct and indirect interests in Subsidiaries. The Issuer is mainly
dependent on the revenues, cash flows, dividends and other contributions of its Subsidiaries to meet its
obligations in respect of its outstanding debts. The ability of the Subsidiaries to make dividends and other
9