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Long Term Debt | 9 Months Ended
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Sep. 30, 2025
Debt Disclosure [Abstract] |
Long Term Debt | 7. Long-Term Debt Long-term debt consisted of the following for the periods presented:
| September 30, |  |  | December 31, |
| 2025 |  |  | 2024 |
Cinemark Holdings, Inc. 4.50% convertible senior notes due August 2025 | $ | — |  |  | $ | 460.0 |
Cinemark USA, Inc. term loan due May 2030 |  | 633.9 |  |  |  | 638.7 |
Cinemark USA, Inc. 5.25% senior notes due July 2028 |  | 765.0 |  |  |  | 765.0 |
Cinemark USA, Inc. 7.00% senior notes due August 2032 |  | 500.0 |  |  |  | 500.0 |
Total long-term debt carrying value (1) | $ | 1,898.9 |  |  | $ | 2,363.7 |
Less: Current portion, net of unamortized debt issuance costs |  | 6.4 |  |  |  | 464.3 |
Less: Debt issuance costs and original issue discount, net of accumulated amortization |  | 22.9 |  |  |  | 29.0 |
Long-term debt, less current portion, net of unamortized debt issuance costs and original issue discount | $ | 1,869.6 |  |  | $ | 1,870.4 |
(1) As of December 31, 2024, the only differences between the long-term debt for Holdings, as presented above, and the long-term debt for CUSA were the $460.0 4.50% Convertible Senior Notes that matured on August 15, 2025 and the related debt issuance costs. The following table sets forth, as of December 31, 2024, the total long-term debt carrying value, current portion of long-term debt and debt issuance costs, net of amortization, for CUSA.
| December 31, |  |  |
| 2024 |  |  |
Total long-term debt carrying value | $ | 1,903.7 |  |  |
Less: Current portion |  | 6.4 |  |  |
Less: Debt issuance costs and original issue discount, net of accumulated amortization |  | 26.9 |  |  |
Long-term debt, less current portion, net of unamortized debt issuance costs and original issue discount | $ | 1,870.4 |  |  |
4.50% Convertible Senior Notes On May 15, 2025, as required by the indenture to the 4.50% Convertible Senior Notes, the Company provided irrevocable notice to the holders of the 4.50% Convertible Senior Notes of its election to settle all conversion obligations with respect to any 4.50% Convertible Senior Notes that are converted on or after May 15, 2025 by means of Combination Settlement as defined in the indenture to the 4.50% Convertible Senior Notes. On the August 15, 2025 maturity date of the 4.50% Convertible Senior Notes, the Company settled the $460.0 outstanding principal amount of the 4.50% Convertible Senior Notes in cash and issued approximately 16.2 shares of Holdings' common stock for the $472.0 owed above the $460.0 principal amount. Additionally, on May 15, 2025, the Company provided notice to the 4.50% Convertible Senior Notes hedge counterparties of its election to settle the hedges by Net Share Settlement, as defined in the call option confirmations. Therefore, concurrently with its issuance of shares to the convertible noteholders, the Company received 16.2 shares of Holdings’ common stock from the hedge counterparties. As of September 30, 2025, there were no 4.50% Convertible Senior Notes or convertible note hedges outstanding. O n August 15, 2025, Holdings entered into irrevocable warrant unwind and termination agreements with each of the warrant counterparties to settle the warrant transactions the Company had entered into in connection with the issuance of the 4.50% Convertible Senior Notes (the “Warrant Early Termination Agreements”). Pursuant to the Warrant Early Termination Agreements, the Company will deliver approximately equal amounts of cash and shares to each counterparty, the amount of which varies based upon the volume-weighted average price per share of the Company’s common stock during the observation period from August 18, 2025 through November 3, 2025, as specified in the Warrant Early Termination Agreements. Since a portion of the warrants are settled in cash under the Warrant Early Termination Agreements, the warrants were required to be accounted for as a liability, at fair value, effective August 15, 2025. The estimated fair value of the liability was derived using a Monte Carlo simulation model. The estimated fair value of the warrants under the terms of the Warrant Early Termination Agreements exceeded the estimated fair value of the previously existing warrants by $15.1, and therefore the Company recognized a loss for that amount on August 15, 2025. During the period from August 15, 2025 through September 30, 2025, the Company paid approximately $39.2 in cash and issued 1.4 shares of Holdings’ common stock with a value of approximately $39.2 to settle a portion of the warrant transactions. The estimated fair value of the liability for the remaining warrants at September 30, 2025 was $132.6 and is reflected in “Liability for warrants” in Holdings’ condensed consolidated balance sheet at September 30, 2025. The Company recognized a loss of $39.4 related to the fair value adjustment of the warrant liability between August 15, 2025 and September 30, 2025. The losses related to the warrants are collectively reflected as “Loss on warrants” in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2025. Subsequent to September 30, 2025, the Company paid approximately $58.7 in cash and issued 2.2 shares of Holdings’ common stock with a value of approximately $58.7 to settle the remaining warrant transactions in accordance with the Warrant Early Termination Agreements, with the final settlement to occur on November 5, 2025. Senior Secured Credit Facility On June 30, 2025, CUSA amended and restated its senior secured credit facility (the “Credit Agreement”) to reduce the rate at which the term loan bears interest by 0.50% and reset the 101% soft call for another six months. CUSA incurred a total of approximately $1.0 in debt issuance costs in connection with the amendment, which are reflected in the condensed consolidated financial statements as follows: (i) $0.8 in debt issuance costs were capitalized and are reflected as a reduction of “Long-term debt, less current portion” on the Company’s condensed consolidated balance sheet, and (ii) $0.2 of legal and other fees are included in “Loss on debt amendments and extinguishments” in the Company’s condensed consolidated statement of income for the three and nine months ended September 30, 2025. As a result of the amendment, CUSA also wrote-off $1.3 of unamortized debt issuance costs and original issue discount associated with exiting lenders of the amended Credit Agreement, which is reflected in “Loss on debt amendments and extinguishments” in the Company’s condensed consolidated statement of income for the three and nine months ended September 30, 2025. On September 5, 2025, CUSA amended and restated its Credit Agreement to increase the revolving credit facility to $225.0 and reduce the range of rates at which the revolving credit loans bear interest. Pursuant to the amendment of the revolving credit facility, interest on revolving credit loans now accrues, at CUSA's option, at either (i) the Term SOFR Rate plus an applicable margin that ranges from 1.75% to 2.00% per annum, or (ii) the Alternate Base Rate, subject, in the case of this clause (ii) to a floor of 1.00% per annum, plus, in the case of this clause (ii), an applicable margin that ranges from 0.75% to 1.00%. CUSA incurred a total of approximately $0.4 in debt issuance costs in connection with the amendment, which were capitalized and are reflected as a reduction of “Long-term debt, less current portion” on the Company’s condensed consolidated balance sheet. In addition, the rate at which CUSA is required to pay a commitment fee on the revolving line of credit now ranges from 0.25% to 0.375%. As of September 30, 2025, there was $633.9 outstanding under the term loan and no borrowings were outstanding under the revolving credit facility. Under the Credit Agreement, quarterly principal payments of $1.6 are due on the term loan through March 31, 2030, with a final principal payment of the remaining unpaid principal due on May 24, 2030. The average interest rate on outstanding term loan borrowings under the Credit Agreement as of September 30, 2025 was approximately 5.7% per annum, after giving effect to the interest rate swap agreements discussed below. Interest Rate Swap Agreements The Company’s interest rate swap agreements are used to hedge a portion of the interest rate risk associated with the variable interest rates on the Company’s term loan and qualify for cash flow hedge accounting. Effective April 30, 2025, the Company amended and extended its $175.0 notional amount interest rate swap and one of its $137.5 notional amount interest rate swap agreements to amend the pay rate and extend the maturity date of each respective swap agreement to December 31, 2027. Upon amending its interest rate swap agreements, the Company determined that the interest payments hedged with the agreements are still probable to occur, therefore the $1.0 of aggregate gains that accumulated on the swaps prior to the amendments are being amortized to interest expense through the maturity date of the swap. Below is a summary of the Company's interest rate swap agreements, which are designated as cash flow hedges, as of September 30, 2025:
Notional |  |  |  |  |  |  |  |  | Estimated |
Amount |  |  | Pay Rate |  | Receive Rate |  | Expiration Date |  | Fair Value (1) |
$ | 137.5 |  |  | 3.23% |  | 1-Month Term SOFR |  | December 31, 2027 |  | $ | 0.4 |
$ | 137.5 |  |  | 3.17% |  | 1-Month Term SOFR |  | December 31, 2027 |  |  | 0.5 |
$ | 175.0 |  |  | 3.23% |  | 1-Month Term SOFR |  | December 31, 2027 |  |  | 0.5 |
|  |  |  |  |  |  | Total |  | $ | 1.4 |
(1) Approximately $1.7 of the total is included in “Prepaid expenses and other” and $0.3 is included in “Other long-term liabilities” on the condensed consolidated balance sheet as of September 30, 2025. The fair values of the interest rate swaps are recorded on Holdings’ and CUSA’s condensed consolidated balance sheets as an asset or liability with the related gains or losses reported as a component of accumulated other comprehensive loss. The changes in fair value are reclassified from accumulated other comprehensive loss into earnings in the same period that the hedged items affect earnings. The valuation technique used to determine fair value is the income approach and under this approach, the Company uses projected future interest rates as provided by counterparties to the interest rate swap agreements and the fixed rates that the Company is obligated to pay under the agreement. Therefore, the Company's measurements are based on observable market data, which fall in Level 2 of the U.S. GAAP hierarchy as defined by FASB ASC Topic 820-10-35. Fair Value of Long-Term Debt and Warrants The Company estimates the fair value of its long-term debt primarily based on observable market prices, which fall under Level 2 of the U.S. GAAP fair value hierarchy as defined by FASB ASC 820-10-35, Fair Value Measurement. The table below presents the fair value of the Company's long-term debt as of the periods presented:
|  | As of |
|  | September 30, 2025 |  |  | December 31, 2024 |
Holdings fair value (1) |  | $ | 1,921.0 |  |  | $ | 2,903.7 |
CUSA fair value |  | $ | 1,921.0 |  |  | $ | 1,902.1 |
(1) The fair value of the 4.50% Convertible Senior Notes was $1,001.6 as of December 31, 2024. The 4.50% Convertible Senior Notes matured on August 15, 2025. T he fair value of the Company’s outstanding warrants at September 30, 2025 of $132.6, was estimated based on a Monte Carlo simulation model, which falls under Level 3 of the U.S. GAAP fair value hierarchy as defined by FASB ASC 820-10-35, Fair Value Measurement

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