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Cirque du Soleil is in a significantly better monetary state of affairs after relaunching its displays, and it controlled to scale back its debt by means of US$100 million and refinance at decrease rates of interest.
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The Quebec corporate’s overall debt is US$550 million, or C$750 million, “the bottom stage of debt lately,” leader monetary officer Emmanuelle Leclerc-Granger mentioned in an interview.
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Ahead of the pandemic, it had amassed a debt of just about US$1 billion to finance enlargement initiatives. The pandemic, which compelled all the trade to halt displays, driven it towards chapter.
In November 2020, Catalyst Capital Team injected US$375 million into the corporate’s reserves, nevertheless it took till summer season 2021 earlier than public well being restrictions eased sufficient to permit performances.
The debt refinancing will save the corporate greater than US$30 million a yr, Leclerc-Granger mentioned. The deal offers the corporate get entry to to a US$100-million line of credit score, nevertheless it has no aim of the use of it, even though it gives some flexibility if wanted.
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Credit standing companies have taken word of its advanced budget, Leclerc-Granger mentioned. Same old & Deficient’s hiked its score 3 times, even though at B+ it’s nonetheless thought to be speculative.
Well being measures have no longer been utterly lifted in all markets the place the Cirque operates, however robust call for has allowed the corporate to extend price tag costs by means of virtually 15 in step with cent on reasonable.
Issues have additionally recovered at Cirque’s Montreal headquarters after the pandemic compelled it to put off maximum of its workers. The Montreal place of work had 1,558 staff in December 2019 and went down to just 200 folks on the peak of the pandemic. As displays resumed, the quantity greater steadily, and there at the moment are 945 staff on the Montreal headquarters.
