National Amusements Sets Amended Credit Agreement Without ViacomCBS Stock Sales

variety.com:

ViacomCBS parent National Amusements Inc. has set an amended credit agreement with its lenders that gives the company some breathing room in liquidity amid the broader coronavirus-induced economic crisis.

There had been speculation that NAI would have to sell some of its ViacomCBS holdings after the beating that those shares have taken with a drop of more than 50% as of earlier this week.

In the past some of NAI’s debt covenants have been tied to the value of its roughly 80% voting interest in ViacomCBS, meaning that a sharp drop in the company’s share price could force the Redstone clan that controls NAI to sell shares to raise some quick cash to keep the company in line with its debt agreements.