NOTE 6—CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES A summary of the carrying value of corporate borrowings and finance lease liabilities is as follows: | | | | | | | (In millions) | | June 30, 2025 | | December 31, 2024 | Secured Debt: | | | | | | | Credit Agreement-Term Loans due 2029 (11.318% as of June 30, 2025 and 11.356% as of December 31, 2024) | | $ | 2,004.2 | | $ | 2,014.2 | 12.75% Odeon Senior Secured Notes due 2027 | | | 400.0 | | | 400.0 | 7.5% First Lien Notes due 2029 | | | 950.0 | | | 950.0 | 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030 | | | 444.7 | | | 427.6 | Subordinated Debt: | | | | | | | 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026 | | | 131.2 | | | 131.2 | 5.75% Senior Subordinated Notes due 2025 | | | — | | | 44.1 | 5.875% Senior Subordinated Notes due 2026 | | | 41.9 | | | 41.9 | 6.125% Senior Subordinated Notes due 2027 | | | 125.5 | | | 125.5 | Total principal amount of corporate borrowings | | $ | 4,097.5 | | $ | 4,134.5 | Finance lease liabilities | | | 53.1 | | | 49.3 | Paid-in-kind interest for 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030 | | | 1.5 | | | 1.5 | Deferred financing costs | | | (43.4) | | | (47.2) | Net discount (1) | | | (162.8) | | | (171.3) | Derivative liability - Conversion Option | | | 116.4 | | | 157.6 | Total carrying value of corporate borrowings and finance lease liabilities | | $ | 4,062.3 | | $ | 4,124.4 | Less: | | | | | | | Current maturities of corporate borrowings | | | (20.0) | | | (64.2) | Current maturities of finance lease liabilities | | | (5.2) | | | (4.4) | Total noncurrent carrying value of corporate borrowings and finance lease liabilities | | $ | 4,037.1 | | $ | 4,055.8 |
| (1) | The following table provides details of the net discount of corporate borrowings: | |
| | | | | | | | | June 30, | | December 31, | (In millions) | | 2025 | | 2024 | 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026 | | $ | 7.2 | | $ | 10.9 | 12.75% Odeon Senior Secured Notes due 2027 | | | (17.9) | | | (20.9) | Credit Agreement-Term Loans due 2029 | | | (38.0) | | | (43.4) | 6.00%/8.00% Cash/PIK/Toggle Senior Secured Exchangeable Notes due 2030 | | | (114.1) | | | (117.9) | Net discount | | $ | (162.8) | | $ | (171.3) |
The following table provides the principal payments required and maturities of corporate borrowing as of June 30, 2025: | | | | | | Principal | | | Amount of | | | Corporate | (In millions) | | Borrowings | Six months ended December 31, 2025 | | $ | 10.0 | 2026 | | | 193.0 | 2027 | | | 545.1 | 2028 | | | 19.5 | 2029 | | | 2,885.2 | 2030 | | | 444.7 | Total | | $ | 4,097.5 |
Debt Repurchases and Exchanges The below table summarizes the various cash debt repurchase transactions during the six months ended June 30, 2025. | | | | | | | | | | | | | | | Aggregate Principal | | Reacquisition | | (Gain)/Loss on | | Accrued Interest | (In millions) | | Repurchased | | Cost | | Extinguishment | | Paid | 5.75% Senior Subordinated Notes due 2025 | | $ | 1.3 | | $ | 1.3 | | $ | — | | $ | — |
The total carrying value of the debt extinguished in the above transactions during the six months ended June 30, 2025 was $1.3 million. The below table summarizes the various debt for equity exchange transactions that occurred during the six months ended June 30, 2024. The transactions were treated as early extinguishments of debt. In accordance with ASC 470-50-40-3, the reacquisition price of the extinguished debt was determined to be the fair value of the Common Stock exchanged. | | | | | | | | | | | | | | | | | | | | | Shares of | | | | | | | | | | | | Aggregate Principal | | Common Stock | | Reacquisition | | Gain on | | Accrued Interest | (In millions, except for share data) | | Exchanged | | Exchanged | | Cost | | Extinguishment | | Exchanged | Second Lien Notes due 2026 | | $ | 191.4 | | | 27,545,325 | | $ | 130.5 | | $ | 91.1 | | $ | 7.4 |
The total carrying value of the debt extinguished in the above transactions during the six months ended June 30, 2024 was $214.2 million. 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030 | | | | | | | | | | | | Carrying Value | | | | | Carrying Value | | | as of | | (Increase) Decrease to | | as of | (In millions) | | December 31, 2024 | | Net Earnings (Loss) | | June 30, 2025 | Principal balance | | $ | 427.6 | | $ | 17.1 | | $ | 444.7 | Discount | | | (117.9) | | | 3.8 | | | (114.1) | Debt issuance costs | | | (23.3) | | | 0.7 | | | (22.6) | Accrued paid-in-kind interest | | | 1.5 | | | — | | | 1.5 | Derivative liability | | | 157.6 | | | (41.2) | | | 116.4 | Carrying value | | $ | 445.5 | | $ | (19.6) | | $ | 425.9 |
The 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030 (the “Existing Exchangeable Notes”) have an effective interest rate of 15.12%. Covenant Compliance As of June 30, 2025, the Company believes that it was in full compliance with all agreements, including related covenants, governing our outstanding debt.
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