e424b3
Filed Pursuant to Rule 424(b)(3)
Registration No. 333-159012
PROSPECTUS
SUPPLEMENT
(To Prospectus dated May 6,
2009)
10,000,000 Shares
Common Stock
This is an offering of 10,000,000 shares of common stock of
Cinemark Holdings, Inc. by the selling stockholder identified in
this prospectus supplement. We will not receive any proceeds
from the sale of shares in this offering.
Our common stock is listed on the New York Stock Exchange under
the symbol CNK. The last reported sale price of our
common stock on November 8, 2010 was $18.57 per share.
Investing in our common stock involves risks. See
Risk Factors beginning on
page S-3
of this prospectus supplement and on page 3 of the
accompanying prospectus. You should also consider the risk
factors described in the documents incorporated by reference
into this prospectus supplement and the accompanying
prospectus.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of the
securities or passed upon the accuracy or adequacy of this
prospectus supplement or the accompanying prospectus. Any
representation to the contrary is a criminal offense.
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Per Share
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Total
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Public offering price
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$
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17.95
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$
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179,500,000
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Underwriting discount
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$
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0.17
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$
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1,700,000
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Proceeds, before expenses, to the selling stockholder
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$
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17.78
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$
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177,800,000
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The selling stockholder has granted Barclays Capital a
30-day
option to purchase up to an additional 1,500,000 shares of
our common stock on the same terms and conditions as set forth
above if Barclays Capital sells more than 10,000,000 shares
of our common stock in this offering.
Barclays Capital expects to deliver the shares on or about
November 12, 2010.
Barclays
Capital
Prospectus Supplement dated November 8, 2010
TABLE OF
CONTENTS
Prospectus
Supplement
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Page
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S-ii
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S-ii
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S-1
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S-3
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S-5
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S-5
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S-6
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S-6
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S-7
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S-8
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S-11
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S-16
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S-16
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S-16
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Prospectus
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3
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3
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4
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4
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4
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You should rely only on the information contained and
incorporated by reference in this prospectus supplement, the
accompanying prospectus or in any free writing prospectus
prepared by or on behalf of us. Neither we, the selling
stockholder nor the underwriter have authorized anyone to
provide you with any other information. If you receive any other
information, you should not rely on it. The selling stockholder
and the underwriter are offering to sell, and seeking offers to
buy, shares of our common stock, par value $0.001 per share, or
our Common Stock, only in jurisdictions where offers and sales
are permitted. The information contained or incorporated by
reference in this prospectus supplement, the accompanying
prospectus, any free writing prospectus or any document
incorporated herein or therein by reference is accurate only as
of the date of this prospectus supplement, regardless of the
time of delivery of this prospectus supplement or of any sale of
shares of our Common Stock. Our business, financial condition,
results of operations and prospects may have changed since that
date.
S-i
ABOUT
THIS PROSPECTUS SUPPLEMENT
This document is in two parts. The first part is this prospectus
supplement, which describes the specific terms of this offering
of our Common Stock and also adds to and updates information
contained in the accompanying prospectus and the documents
incorporated by reference into this prospectus supplement and
the accompanying prospectus. The second part, the accompanying
prospectus dated May 6, 2009, gives more general
information, some of which may not apply to this offering. You
should read this prospectus supplement and the accompanying
prospectus, including the information incorporated herein and
therein by reference and any free writing prospectuses we have
authorized for use in connection with this offering, in their
entirety before making an investment decision. To the extent
there is a variation between the information contained in this
prospectus supplement, on the one hand, and the information
contained in the accompanying prospectus, on the other hand, you
should rely on the information in this prospectus supplement.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus supplement, the accompanying prospectus and the
documents incorporated herein and therein by reference include
forward-looking statements based on our current
expectations, assumptions, estimates and projections about our
business and our industry. They include statements relating to:
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future revenues, expenses and profitability;
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the future development and expected growth of our business;
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projected capital expenditures;
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attendance at movies generally or in any of the markets in which
we operate;
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the number or diversity of popular movies released and our
ability to successfully license and exhibit popular films;
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national and international growth in our industry;
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competition from other exhibitors and alternative forms of
entertainment; and
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determinations in lawsuits in which we are defendants.
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You can identify forward-looking statements by the use of words
such as may, should, will,
could, estimates, predicts,
potential, continue,
anticipates, believes,
plans, expects, future and
intends and similar expressions which are intended
to identify forward-looking statements. These statements are not
guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond our
control and difficult to predict and could cause actual results
to differ materially from those expressed or forecasted in the
forward-looking statements. In evaluating forward-looking
statements, you should carefully consider the risks and
uncertainties described or incorporated by reference herein,
including in the section entitled Risk Factors. All
forward-looking statements attributable to us or persons acting
on our behalf are expressly qualified in their entirety by the
cautionary statements and risk factors contained or incorporated
by reference in this prospectus supplement. Forward-looking
statements contained in this prospectus supplement reflect our
view only as of the date of this prospectus supplement. Neither
we nor the underwriter undertake any obligation, other than as
required by law, to update or revise any forward-looking
statements, whether as a result of new information, future
events or otherwise.
S-ii
PROSPECTUS
SUPPLEMENT SUMMARY
This summary highlights information contained elsewhere in,
or incorporated by reference into, this prospectus supplement
and the accompanying prospectus and does not contain all of the
information you should consider in making your investment
decision. To understand this offering fully, you should read
this summary together with the more detailed information
included elsewhere in, or incorporated by reference into, this
prospectus supplement and the accompanying prospectus and any
free writing prospectus we have authorized for use in connection
with this offering. You should also carefully consider the
matters discussed, and incorporated by reference, herein in the
sections entitled Risk Factors.
Unless otherwise specified or the context otherwise requires,
the terms Cinemark, the Company,
we, us and our refer to
Cinemark Holdings, Inc., a Delaware corporation, and all of its
subsidiaries, and the term you refers to a
prospective investor. The term selling stockholder
refers to the selling stockholder named in this prospectus
supplement under the caption Selling Stockholder.
The
Company
We are a leader in the motion picture exhibition industry. We
operated 428 theatres and 4,938 screens in the
U.S. and Latin America as of September 30, 2010, and
approximately 236.7 million patrons attended our theatres
worldwide during the year ended December 31, 2009. Our
circuit is the third largest in the U.S. with
295 theatres and 3,854 screens in 39 states and
one Canadian province. We are the most geographically diverse
circuit in Latin America with 133 theatres and
1,084 screens in 13 countries. Our modern theatre circuit
features stadium seating for approximately 85% of our first-run
auditoriums.
We selectively build or acquire new theatres in markets where we
can establish and maintain a strong market position. We believe
our portfolio of modern theatres provides a preferred
destination for moviegoers and contributes to our significant
cash flows from operating activities. Our significant presence
in the U.S. and Latin America has made us an important
distribution channel for movie studios, particularly as they
look to capitalize on the expanding worldwide box office. Our
market leadership is attributable in large part to our senior
executives, who average approximately 35 years of industry
experience and have successfully navigated us through multiple
industry and economic cycles.
We grew our total revenue per patron at a compound annual growth
rate during the last three fiscal years of 6.8%, the highest
among the three largest U.S. motion picture exhibitors.
Revenues, operating income and net income attributable to
Cinemark Holdings, Inc. for the year ended December 31,
2009 were $1,976.5 million, $250.5 million and
$97.1 million, respectively.
Additional
Information
Our corporate headquarters is located at 3900 Dallas Parkway,
Suite 500, Plano, Texas 75093. Our telephone number is
(972) 665-1000.
Our Web site address is www.cinemark.com. The information
on our Web site does not constitute part of this prospectus
supplement.
S-1
The
Offering
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Common Stock offered by the selling stockholder |
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10,000,000 shares. |
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Underwriters Option |
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The selling stockholder has granted the underwriter a 30-day
option to purchase up to an additional 1,500,000 shares of
our Common Stock on the same terms and conditions as set forth
above if the underwriter sells more than 10,000,000 shares
in this offering. |
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Use of Proceeds |
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We will not receive any proceeds from the sale of shares of our
Common Stock by the selling stockholder. |
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Risk Factors |
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Investing in our Common Stock involves substantial risks. You
should carefully consider the information in this prospectus
supplement, the accompanying prospectus, the documents
incorporated by reference herein and therein and any free
writing prospectus we have authorized in connection with this
offering in their entirety prior to investing in our Common
Stock. In particular, we urge you to carefully consider the
factors set forth under the heading Risk Factors. |
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Dividend policy |
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Following this offering, we intend to continue to pay a
quarterly cash dividend on our Common Stock. On November 2,
2010, our board of directors revised the dividend rate from an
annual rate equal to $0.72 per share (or a quarterly rate equal
to $0.18 per share) to $0.84 per share (or a quarterly rate
equal to $0.21 per share) of our Common Stock. The declaration
of future dividends on our Common Stock will be at the
discretion of our board of directors and will depend upon many
factors, including our results of operations, financial
condition, earnings, capital requirements, limitations in our
debt agreements and legal requirements. See Dividend
Policy. |
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New York Stock Exchange symbol |
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CNK |
S-2
RISK
FACTORS
An investment in our Common Stock involves a high degree of
risk. You should carefully consider the following risks, as well
as the risk factors set forth in our most recently filed Annual
Report on
Form 10-K,
before you decide to purchase shares of our Common Stock. You
should also refer to the other information in this prospectus
supplement and the accompanying prospectus. Additional risks and
uncertainties that are not yet identified may also materially
harm our business, operating results and financial condition and
could result in a complete loss of your investment. Any adverse
effect on our business, financial condition or operating results
could result in a decline in the trading price of our Common
Stock and your loss of all or part of your investment.
Risks
Related to This Offering
The
market price of our Common Stock may be volatile.
There can be no assurance that an active trading market for our
Common Stock will continue. The securities markets have recently
experienced extreme price and volume fluctuations and the market
prices of the securities of companies have been particularly
volatile. This market volatility, as well as general economic or
political conditions, could reduce the market price of our
Common Stock regardless of our operating performance. In
addition, our operating results could be below the expectations
of investment analysts and investors and, in response, the
market price of our Common Stock may decrease significantly and
prevent investors from reselling their shares of our Common
Stock at or above a market price that is favorable. In the past,
companies that have experienced volatility in the market price
of their stock have been the subject of securities class action
litigation. If we were the subject of securities class action
litigation, it could result in substantial costs, liabilities
and a diversion of managements attention and resources.
Future
sales of our Common Stock may adversely affect the prevailing
market price.
If a large number of shares of our Common Stock is sold in the
open market, or if there is a perception that such sales will
occur, the trading price of our Common Stock could decrease. In
addition, the sale of the shares subject to this prospectus
supplement could impair our ability to raise capital through the
sale of additional shares of our Common Stock. As of
September 30, 2010, we had an aggregate of
172,045,131 shares of our Common Stock authorized but
unissued and not reserved for specific purposes. In general, we
may issue all of these shares without any action or approval by
our stockholders. We may issue shares of our Common Stock in
connection with acquisitions.
As of September 30, 2010, we had 113,437,519 shares of
our Common Stock outstanding. Of these shares, as of November 5,
2010, approximately 63,188,843 shares were freely tradable.
The remaining shares of our Common Stock were restricted
securities, as that term is defined in Rule 144 under
the Securities Act of 1933, as amended, or the Securities Act.
Restricted securities may not be resold in a public distribution
except in compliance with the registration requirements of the
Securities Act or pursuant to an exemption therefrom, including
the exemptions provided by Regulation S and Rule 144
promulgated under the Securities Act. We have currently
registered for resale on a
Form S-3
47,803,903 shares of our Common Stock held by certain of
our stockholders pursuant to a registration rights agreement
among us and such stockholders, of which 35,703,708 shares
are held by the selling stockholder and 12,100,195 shares
are held by our other stockholders.
We cannot predict whether substantial amounts of our Common
Stock will be sold in the open market in anticipation of, or
following, any divestiture by any of our existing stockholders,
our directors or executive officers of their shares of our
Common Stock.
As of September 30, 2010, there were 9,824,480 shares
of our Common Stock reserved for issuance under the Amended and
Restated Cinemark Holdings, Inc. 2006 Long Term Incentive Plan,
of which 449,068 shares were issuable upon exercise of
options outstanding as of September 30, 2010. The sale of
shares issued upon the exercise of stock options could further
dilute your investment in our Common Stock and adversely affect
the market price of our Common Stock.
S-3
You
may not receive dividends on our Common Stock.
Holders of our Common Stock are only entitled to receive such
dividends as our board of directors may declare out of funds
legally available for such payments. The declaration of future
dividends on our Common Stock will depend upon many factors,
including our results of operations, financial condition,
earnings, capital requirements, limitations in our debt
agreements and legal requirements. Although we have historically
declared cash dividends on our Common Stock, we are not required
to do so and may reduce or eliminate our Common Stock dividend
in the future. This could adversely affect the market price of
our Common Stock.
Provisions
in our corporate documents and certain agreements, as well as
Delaware law, may hinder a change of control.
Provisions in our amended and restated certificate of
incorporation and bylaws, as well as provisions of the Delaware
General Corporation Law, could discourage unsolicited proposals
to acquire us, even though such proposals may be beneficial to
you. These provisions include:
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authorization of our board of directors to issue shares of
preferred stock without stockholder approval;
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a board of directors classified into three classes of directors
with the directors of each class, subject to shorter initial
terms for some directors, having staggered, three-year terms;
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provisions regulating the ability of our stockholders to
nominate directors for election or to bring matters for action
at annual meetings of our stockholders; and
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provisions of Delaware law that restrict many business
combinations and provide that directors serving on classified
boards of directors, such as ours, may be removed only for cause.
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Certain provisions of our 8.625% senior notes indenture and
our senior secured credit facility may have the effect of
delaying or preventing future transactions involving a
change of control. A change of control
would require us to make an offer to the holders of our
8.625% senior notes to repurchase all of the outstanding
notes at a purchase price equal to 101% of the aggregate
principal amount outstanding plus accrued unpaid interest to the
date of the purchase. A change of control would also
be an event of default under our senior secured credit facility.
The
interests of Madison Dearborn Capital Partners, IV, L.P., or
MDCP, may not be aligned with yours.
MDCP, after giving effect to this offering, will beneficially
own approximately 23% of our Common Stock (approximately 21% of
our Common Stock if the underwriters option to purchase
additional shares is exercised in full) and under a director
nomination agreement, is entitled to designate nominees for five
members of our board of directors. Accordingly, MDCP has
influence on, and effectively controls, our corporate and
management policies and has significant influence over the
outcome of any corporate transaction or other matters submitted
to our stockholders for approval, including potential mergers or
acquisitions, asset sales and other significant corporate
transactions. MDCP could seek to take other actions that might
be desirable to MDCP but not to other stockholders.
S-4
USE OF
PROCEEDS
We will not receive any of the proceeds from the sale of the
shares of our Common Stock by the selling stockholder.
CAPITALIZATION
The following table sets forth our cash and capitalization as of
September 30, 2010. This table should be read in
conjunction with Managements Discussion and Analysis
of Financial Condition and Results of Operations and the
consolidated financial statements and notes thereto included in
our Annual Report on
Form 10-K
for the year ended December 31, 2009 and our Quarterly
Report on
Form 10-Q
for the quarter ended September 30, 2010, each of which is
incorporated by reference in this prospectus supplement.
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As of
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September 30,
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2010
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Actual
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In Thousands
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(Unaudited)
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Cash and cash equivalents
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$
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430,467
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Long-term debt, including current maturities:
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Senior secured credit
facility(1)
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$
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1,075,473
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8.625% senior
notes(2)
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470,000
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Other subsidiary
indebtedness(3)
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181
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Total long-term debt
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1,545,654
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Capital lease obligations, including current portion
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137,271
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Total long-term debt and capital lease obligations
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1,682,925
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Stockholders equity:
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Cinemark Holdings, Inc.s stockholders equity:
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Common stock, $0.001 par value: 300,000,000 shares
authorized, 116,797,378 shares issued and
113,437,519 shares outstanding
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117
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Additional
paid-in-capital
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1,031,673
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Treasury stock, 3,359,859 common shares at cost
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(44,725
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Retained deficit
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(13,423
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Accumulated other comprehensive income
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9,752
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Total Cinemark Holdings, Inc.s stockholders
equity
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983,394
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Non-controlling interests
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11,998
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Total stockholders equity
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995,392
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Total capitalization
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$
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2,678,317
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(1) |
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As of September 30, 2010, our senior secured credit
facility consisted of a $150.0 million revolving credit
facility and a $1,120.0 million term loan, of which
$1,075.5 million was outstanding. Approximately
$151.1 million of the term loan matures October 2013 and
$924.4 million matures April 2016. The average interest
rate on outstanding term loan borrowings under our senior
secured credit facility at September 30, 2010 was 4.4% per
annum. |
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Represents the aggregate principal amount of the
8.625% Senior Notes due 2019 before the original issue
discount, which was $10.5 million as of September 30,
2010. |
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Consists of approximately $0.2 million of our
9% Senior Subordinated Notes due 2013, which were
subsequently redeemed on October 14, 2010. |
S-5
PRICE
RANGE OF OUR COMMON STOCK AND DIVIDENDS
Our Common Stock is listed for trading on the New York Stock
Exchange, or the NYSE, under the symbol CNK. The
following table sets forth the quarterly high and low sales
prices of our Common Stock on the NYSE for the periods indicated
and dividends paid during such periods:
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Dividend
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High
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Low
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per Share
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Year ending December 31, 2008
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First Quarter
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$
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17.09
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$
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12.24
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$
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0.18
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Second Quarter
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$
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15.73
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$
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12.05
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$
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0.18
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Third Quarter
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$
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16.30
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$
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11.08
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$
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0.18
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Fourth Quarter
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$
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14.51
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$
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6.73
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$
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0.18
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Year ending December 31, 2009
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First Quarter
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$
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10.26
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$
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6.75
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$
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0.18
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Second Quarter
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$
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11.49
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$
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8.63
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$
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0.18
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Third Quarter
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$
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11.65
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$
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9.50
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$
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0.18
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Fourth Quarter
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$
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14.85
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$
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10.08
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$
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0.18
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Year ending December 31, 2010
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First Quarter
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$
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18.47
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$
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14.08
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$
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0.18
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Second Quarter
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$
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19.80
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$
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13.09
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$
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0.18
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Third Quarter
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$
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16.89
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$
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12.73
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$
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0.18
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On November 8, 2010, the closing sale price of our Common Stock
as reported on the NYSE was $18.57 per share, and we had
approximately 117 holders of record of our Common Stock.
DIVIDEND
POLICY
Following this offering, we intend to continue to pay a
quarterly cash dividend on our Common Stock. On November 2,
2010, our board of directors revised the dividend rate from an
annual rate equal to $0.72 per share (or a quarterly rate equal
to $0.18 per share) to $0.84 per share (or a quarterly rate
equal to $0.21 per share) of our Common Stock. Our ability to
pay dividends is limited by our status as a holding company and
the terms of our indentures, our senior secured credit facility
and certain of our other debt instruments, which restrict our
ability to pay dividends to our stockholders and the ability of
certain of our subsidiaries to pay dividends, directly or
indirectly, to us. Under our debt instruments, we may pay a cash
dividend up to a specified amount, provided we have satisfied
certain financial covenants in, and are not in default under,
our debt instruments. The declaration of future dividends on our
Common Stock will be at the discretion of our board of directors
and will depend upon many factors, including our results of
operations, financial condition, earnings, capital requirements,
limitations in our debt agreements and legal requirements. We
cannot assure you that any dividends will be paid in the
anticipated amounts and frequency set forth in this prospectus
supplement, if at all.
S-6
SELLING
STOCKHOLDER
This prospectus supplement relates to the resale from time to
time of up to a total of 10,000,000 shares of our Common
Stock by the selling stockholder. The following table sets forth
information with respect to the current beneficial ownership of
the selling stockholder, the number of shares of our Common
Stock being offered hereby by the selling stockholder and
information with respect to shares to be beneficially owned by
the selling stockholder after completion of this offering,
assuming both no exercise and full exercise of the
underwriters option to purchase additional shares of our
Common Stock. The percentages in the following table reflect the
shares beneficially owned by the selling stockholder as a
percentage of the total number of shares of our Common Stock
outstanding as of November 5, 2010.
Under a director nomination agreement, MDCP is entitled to
designate nominees for five members of our board of directors.
The selling stockholder has not, except as described in the
immediately preceding paragraph and the footnote below, held any
position or office or had any other material relationship with
us within the past three years, other than its ownership of
shares of our Common Stock as described below.
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Shares Beneficially Owned After the Offering
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Assuming the
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Assuming the
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Underwriters
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Underwriters
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Shares Beneficially
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Option is Not
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Option is Exercised
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Owned Prior to Offering
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Exercised
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in Full
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Name
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Number
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Percentage
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Number
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Percentage
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Number
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Percentage
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Madison Dearborn Capital Partners IV,
L.P.(1)
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35,703,708
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31
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%
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25,703,708
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23
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%
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24,203,708
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21
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%
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(1) |
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The shares beneficially owned by MDCP may be deemed to be
beneficially owned by Madison Dearborn Partners IV, LP, or MDP
IV, the sole general partner of MDCP. John A. Canning, Jr., Paul
J. Finnegan and Samuel M. Mencoff are the sole members of a
limited partner committee of MDCP that has the power, acting by
majority vote, to vote or dispose of the shares beneficially
held by MDCP. Vahe Dombalagian, a current director of the
Company, is a limited partner of MDP IV and a managing director
of Madison Dearborn Partners L.P., and therefore may be deemed
to share beneficial ownership of the shares beneficially owned
by MDCP. Messrs. Canning, Finnegan, Mencoff and Dombalagian
and MDP IV each hereby disclaims any beneficial ownership of any
shares beneficially owned by MDCP. |
S-7
MATERIAL
UNITED STATES FEDERAL INCOME AND ESTATE TAX CONSIDERATIONS
TO NON-U.S.
HOLDERS
The following is a summary of material United States federal
income and estate tax consequences of the purchase, ownership
and disposition of our Common Stock as of the date hereof.
Except where noted, this summary deals only with our Common
Stock that is held as a capital asset by a
non-U.S. holder.
A
non-U.S. holder
means a person (other than a partnership) that is not for United
States federal income tax purposes any of the following:
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an individual citizen or resident of the United States;
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a corporation (or any other entity treated as a corporation for
United States federal income tax purposes) created or organized
in or under the laws of the United States, any state thereof or
the District of Columbia;
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an estate the income of which is subject to United States
federal income taxation regardless of its source; or
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a trust if it (1) is subject to the primary supervision of
a court within the United States and one or more United States
persons have the authority to control all substantial decisions
of the trust or (2) has a valid election in effect under
applicable United States Treasury regulations to be treated as a
United States person.
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This summary is based upon provisions of the Internal Revenue
Code of 1986, as amended, or the Code, and regulations, rulings
and judicial decisions as of the date hereof. Those authorities
may be changed, perhaps retroactively, so as to result in United
States federal income and estate tax consequences different from
those summarized below. This summary does not address all
aspects of United States federal income and estate taxes and
does not deal with foreign, state, local or other tax
considerations that may be relevant to
non-U.S. holders
in light of their personal circumstances. In addition, it does
not represent a detailed description of the United States
federal income tax consequences applicable to you if you are
subject to special treatment under the United States federal
income tax laws (including if you are a United States
expatriate, controlled foreign corporation,
passive foreign investment company or a partnership
or other pass-through entity for United States federal income
tax purposes). We cannot assure you that a change in law will
not alter significantly the tax considerations that we describe
in this summary.
If a partnership holds our Common Stock, the tax treatment of a
partner will generally depend upon the status of the partner and
the activities of the partnership. If you are a partner of a
partnership holding our Common Stock, you should consult your
tax advisors.
If you are considering the purchase of our Common Stock, you
should consult your own tax advisors concerning the particular
United States federal income and estate tax consequences to you
of the ownership of our Common Stock, as well as the
consequences to you arising under the laws of any other taxing
jurisdiction.
Dividends
Dividends paid to a
non-U.S. holder
of our Common Stock generally will be subject to withholding of
United States federal income tax at a 30% rate or such lower
rate as may be specified by an applicable income tax treaty.
However, dividends that are effectively connected with the
conduct of a trade or business by the
non-U.S. holder
within the United States (and, if required by an applicable
income tax treaty, are attributable to a United States permanent
establishment) are not subject to the withholding tax, provided
certain certification and disclosure requirements are satisfied.
Instead, such dividends are subject to United States federal
income tax on a net income basis in the same manner as if the
non-U.S. holder
were a United States person as defined under the Code. Any such
effectively connected dividends received by a foreign
corporation may be subject to an additional branch profits
tax at a 30% rate or such lower rate as may be specified
by an applicable income tax treaty.
S-8
A
non-U.S. holder
of our Common Stock who wishes to claim the benefit of an
applicable treaty rate and avoid backup withholding, as
discussed below, for dividends will be required (a) to
complete Internal Revenue Service
Form W-8BEN
(or other applicable form) and certify under penalty of perjury
that such holder is not a United States person as defined under
the Code and is eligible for treaty benefits or (b) if our
Common Stock is held through certain foreign intermediaries, to
satisfy the relevant certification requirements of applicable
United States Treasury regulations. Special certification and
other requirements apply to certain
non-U.S. holders
that are pass-through entities rather than corporations or
individuals.
A
non-U.S. holder
of our Common Stock eligible for a reduced rate of United States
withholding tax pursuant to an income tax treaty may obtain a
refund of any excess amounts withheld by filing an appropriate
claim for refund with the Internal Revenue Service.
Gain on
Disposition of our Common Stock
Any gain realized on the disposition of our Common Stock
generally will not be subject to United States federal income
tax unless:
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the gain is effectively connected with a trade or business of
the
non-U.S. holder
in the United States (and, if required by an applicable income
tax treaty, is attributable to a United States permanent
establishment of the
non-U.S. holder);
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the
non-U.S. holder
is an individual who is present in the United States for
183 days or more in the taxable year of that disposition,
and certain other conditions are met; or
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we are or have been a United States real property holding
corporation for United States federal income tax purposes.
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An individual
non-U.S. holder
described in the first bullet point immediately above will be
subject to tax on the net gain derived from the sale under
regular graduated United States federal income tax rates. An
individual
non-U.S. holder
described in the second bullet point immediately above will be
subject to a flat 30% tax on the gain derived from the sale,
which may be offset by United States source capital losses, even
though the individual is not considered a resident of the United
States. If a
non-U.S. holder
that is a foreign corporation falls under the first bullet point
immediately above, it will be subject to tax on its net gain in
the same manner as if it were a United States person as defined
under the Code and, in addition, may be subject to the branch
profits tax equal to 30% of its effectively connected earnings
and profits or at such lower rate as may be specified by an
applicable income tax treaty.
The determination of whether a corporation is a United
States real property holding corporation for United States
federal income tax purposes involves a complex factual analysis,
including a valuation of the corporations assets. We have
not determined at this time whether we are a United States real
property holding corporation, although there is a possibility
that we are or will become a United States real property holding
corporation. If we are or become a United States real property
holding corporation, then assuming our Common Stock is regularly
traded on an established securities market (such as the NYSE),
only a
non-U.S. holder
who holds or held (at any time during the shorter of the
five-year period ending on the date of disposition and the
non-U.S. holders
holding period for our Common Stock) more than 5% of our Common
Stock will be subject to the United States federal income tax on
the disposition of our Common Stock under these rules.
Federal
Estate Tax
Common stock held by an individual
non-U.S. holder
at the time of death will be included in such holders
gross estate for United States federal estate tax purposes,
unless an applicable estate tax treaty provides otherwise.
S-9
Information
Reporting and Backup Withholding
We must report annually to the Internal Revenue Service and to
each
non-U.S. holder
the amount of dividends paid to such holder and the tax withheld
with respect to such dividends, regardless of whether
withholding was required. Copies of the information returns
reporting such dividends and withholding may also be made
available to the tax authorities in the country in which the
non-U.S. holder
resides under the provisions of an applicable income tax treaty.
A
non-U.S. holder
will be subject to backup withholding for dividends paid to such
holder unless such holder certifies under penalty of perjury
that it is a
non-U.S. holder
(and the payor does not have actual knowledge or reason to know
that such holder is a United States person as defined under the
Code), or such holder otherwise establishes an exemption.
Information reporting and, depending on the circumstances,
backup withholding will apply to the proceeds of a sale of our
Common Stock within the United States or conducted through
certain United States-related financial intermediaries, unless
the beneficial owner certifies under penalty of perjury that it
is a
non-U.S. holder
(and the payor does not have actual knowledge or reason to know
that the beneficial owner is a United States person as defined
under the Code), or such owner otherwise establishes an
exemption.
Any amounts withheld under the backup withholding rules will be
allowed as a refund or a credit against a
non-U.S. holders
United States federal income tax liability provided the required
information is timely furnished to the Internal Revenue Service.
Recently
Enacted Legislation
Under recently enacted legislation, the relevant withholding
agent may be required to withhold 30% of any dividends and the
proceeds of a sale of Common Stock paid after December 31,
2012 to (i) a foreign financial institution unless such
foreign financial institution agrees to verify, report and
disclose its U.S. account holders and meets certain other
specified requirements or (ii) a non-financial foreign
entity that is the beneficial owner of the payment unless such
entity certifies that it does not have any substantial United
States owners or provides the name, address and taxpayer
identification number of each substantial United States owner
and such entity meets certain other specified requirements.
Non-U.S. holders
should consult their own tax advisors regarding the effect of
this newly enacted legislation.
S-10
UNDERWRITING
Under the terms of an underwriting agreement, which we will file
as an exhibit to our Current Report on
Form 8-K
and incorporate by reference in this prospectus supplement and
the accompanying prospectus, Barclays Capital, as the sole
underwriter in this offering, has agreed to purchase from the
selling stockholder, 10,000,000 shares of our Common Stock.
The underwriting agreement provides that the underwriters
obligation to purchase shares of our Common Stock depends on the
satisfaction of the conditions contained in the underwriting
agreement including:
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the obligation to purchase all of the shares of our Common Stock
offered hereby, if any of the shares are purchased;
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the representations and warranties made by us and the selling
stockholder to the underwriter are true;
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there is no material change in our business or in the financial
markets; and
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we and the selling stockholder deliver customary closing
documents to the underwriter.
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Commissions
and Expenses
The following table summarizes the underwriting discounts and
commissions the selling stockholder will pay to the underwriter,
assuming both no exercise and full exercise of the
underwriters option to purchase additional shares of our
Common Stock. The underwriting fee is the difference between the
initial price to the public and the amount the underwriter pays
to the selling stockholder for the shares.
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Per share
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$
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0.17
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Total (no exercise)
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$
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1,700,000
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Total (full exercise)
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$
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1,955,000
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The underwriter has advised us that the underwriter proposes to
offer the shares of our Common Stock directly to the public at
the public offering price on the cover of this prospectus
supplement and to selected dealers, which may include the
underwriter, at such offering price less a concession not in
excess of $0.10 per share. After the offering, the underwriter
may change the offering price and other selling terms. Sales of
shares made outside of the United States may be made by
affiliates of the underwriter.
The expenses of this offering that are payable by us and the
selling stockholder are estimated to be $150,000 (excluding
underwriting discounts and commissions). We have agreed to pay
expenses incurred by the selling stockholder in connection with
the offering, other than the underwriting discounts and
commissions, any costs and expenses incurred by the selling
stockholder related to their performance under the underwriting
agreement and any transfer taxes related to their sale of our
Common Stock.
Option to
Purchase Additional Shares
The selling stockholder has granted the underwriter an option
exercisable for 30 days after the date of this prospectus,
to purchase, from time to time, in whole or in part, up to
1,500,000 shares of our Common Stock at the public offering
price less underwriting discounts and commissions. This option
may be exercised if the underwriter sells more than
10,000,000 shares of our Common Stock in connection with
the offering.
Lock-Up
Agreement
The selling stockholder has agreed that, without the prior
written consent of the underwriter, it will not directly or
indirectly, (1) offer for sale, sell, pledge, or otherwise
dispose of (or enter into any transaction or device that is
designed to, or could be expected to, result in the disposition
by any person at any time in the future of) any shares of our
Common Stock (including, without limitation, shares of our
Common Stock that may be deemed to be beneficially owned by them
in accordance with the rules and regulations of the SEC and
shares of Common Stock that may be issued upon exercise of any
options or warrants) or securities
S-11
convertible into or exercisable or exchangeable for Common
Stock, (2) enter into any swap or other derivatives
transaction that transfers to another, in whole or in part, any
of the economic consequences of ownership of our Common Stock,
(3) make any demand for or exercise any right or file or
cause to be filed a registration statement, including any
amendments thereto, with respect to the registration of any
shares of our common stock or securities convertible,
exercisable or exchangeable into Common Stock or any of our
other securities, or (4) publicly disclose the intention to
do any of the foregoing for a period of 30 days after the
date of this prospectus supplement.
The underwriter, in its sole discretion, may release our Common
Stock and other securities subject to the
lock-up
agreement described above in whole or in part at any time with
or without notice. When determining whether or not to release
our Common Stock and other securities from the
lock-up
agreement, the underwriter will consider, among other factors,
the holders reasons for requesting the release, the number
of shares of our Common Stock and other securities for which the
release is being requested and market conditions at the time.
Indemnification
We and the selling stockholder have agreed to indemnify the
underwriter against certain liabilities, including liabilities
under the Securities Act, and to contribute to payments that the
underwriter may be required to make for these liabilities.
Stabilization,
Short Positions and Penalty Bids
The underwriter may engage in stabilizing transactions, covering
transactions or purchases for the purpose of pegging, fixing or
maintaining the price of our Common Stock, in accordance with
Regulation M under the Securities Exchange Act of 1934, as
amended, or the Exchange Act:
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Stabilizing transactions permit bids to purchase the underlying
security so long as the stabilizing bids do not exceed a
specified maximum.
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Covering transactions involve purchases of our Common Stock in
the open market after the distribution has been completed in
order to cover short positions.
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These stabilizing transactions and covering transactions may
have the effect of raising or maintaining the market price of
our Common Stock or preventing or retarding a decline in the
market price of our Common Stock. As a result, the price of our
Common Stock may be higher than the price that might otherwise
exist in the open market. These transactions may be effected on
the NYSE or otherwise and, if commenced, may be discontinued at
any time.
Neither we nor the underwriter make any representation or
prediction as to the direction or magnitude of any effect that
the transactions described above may have on the price of our
Common Stock. In addition, neither we nor the underwriter make
any representation that the underwriter will engage in these
stabilizing transactions or that any transaction, once
commenced, will not be discontinued without notice.
Electronic
Distribution
A prospectus supplement and the accompanying prospectus in
electronic format may be made available on the Internet sites or
through other online services maintained by the underwriter
and/or
selling group members participating in this offering, or by
their affiliates. In those cases, prospective investors may view
offering terms online and, depending upon the underwriter or
selling group member, prospective investors may be allowed to
place orders online. The underwriter may agree with us to
allocate a specific number of shares for sale to online
brokerage account holders. Any such allocation for online
distributions will be made by the underwriter on the same basis
as other allocations.
Other than the prospectus supplement and the accompanying
prospectus in electronic format, the information on the
underwriters or any selling group members website
and any information contained in any other website maintained by
the underwriter or a selling group member is not part of the
prospectus
S-12
supplement and the accompanying prospectus or the registration
statement of which this prospectus supplement and the
accompanying prospectus forms a part, has not been approved
and/or
endorsed by us or the underwriter or any selling group member in
its capacity as underwriter or selling group member and should
not be relied upon by investors.
Stamp
Taxes
If you purchase shares of our Common Stock offered in this
prospectus supplement and the accompanying prospectus, you may
be required to pay stamp taxes and other charges under the laws
and practices of the country of purchase, in addition to the
offering price listed on the cover page of this prospectus
supplement and the accompanying prospectus.
Relationships
From time to time, Barclays Capital and its affiliates have,
directly or indirectly, provided investment banking or financial
advisory service to us, for which they have received customary
fees and expense reimbursement.
Selling
Restrictions
European
Economic Area
In relation to each member state of the European Economic Area
that has implemented the Prospectus Directive (each, a relevant
member state), with effect from and including the date on which
the Prospectus Directive is implemented in that relevant member
state (the relevant implementation date), an offer of securities
described in this prospectus supplement may not be made to the
public in that relevant member state other than:
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to any legal entity that is authorized or regulated to operate
in the financial markets or, if not so authorized or regulated,
whose corporate purpose is solely to invest in securities;
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to any legal entity that has two or more of (1) an average
of at least 250 employees during the last financial year;
(2) a total balance sheet of more than 43,000,000 and
(3) an annual net turnover of more than 50,000,000,
as shown in its last annual or consolidated accounts;
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to fewer than 100 natural or legal persons (other than qualified
investors as defined in the Prospectus Directive) subject to
obtaining the prior consent of the underwriter; or
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in any other circumstances that do not require the publication
of a prospectus pursuant to Article 3 of the Prospectus
Directive,
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provided that no such offer of securities shall require us or
the underwriter to publish a prospectus pursuant to
Article 3 of the Prospectus Directive.
For purposes of this provision, the expression an offer of
securities to the public in any relevant member state
means the communication in any form and by any means of
sufficient information on the terms of the offer and the
securities to be offered so as to enable an investor to decide
to purchase or subscribe the securities, as the expression may
be varied in that member state by any measure implementing the
Prospectus Directive in that member state, and the expression
Prospectus Directive means Directive 2003/71/EC and
includes any relevant implementing measure in each relevant
member state.
We and the selling stockholder have not authorized and do not
authorize the making of any offer of securities through any
financial intermediary on their behalf, other than offers made
by the underwriter with a view to the final placement of the
securities as contemplated in this prospectus supplement.
Accordingly, no purchaser of the securities, other than the
underwriter, is authorized to make any further offer of the
securities on behalf of us, the selling stockholder or the
underwriter.
S-13
United
Kingdom
This prospectus supplement is only being distributed to, and is
only directed at, persons in the United Kingdom that are
qualified investors within the meaning of Article 2(1)(e)
of the Prospectus Directive, or Qualified Investors, that are
also (i) investment professionals falling within
Article 19(5) of the Financial Services and Markets Act
2000 (Financial Promotion) Order 2005, or the Order, or
(ii) high net worth entities, and other persons to whom it
may lawfully be communicated, falling within
Article 49(2)(a) to (d) of the Order (all such persons
together being referred to as relevant persons).
This prospectus supplement and its contents are confidential and
should not be distributed, published or reproduced (in whole or
in part) or disclosed by recipients to any other persons in the
United Kingdom. Any person in the United Kingdom that is not a
relevant persons should not act or rely on this document or any
of its contents.
Australia
No prospectus supplement or other disclosure document (as
defined in the Corporations Act 2001 (Cth) of Australia, or the
Corporations Act)) in relation to the securities has been or
will be lodged with the Australian Securities &
Investments Commission, or ASIC. This document has not been
lodged with ASIC and is only directed to certain categories of
exempt persons. Accordingly, if you receive this document in
Australia:
(a) you confirm and warrant that you are either:
(i) a sophisticated investor under
section 708(8)(a) or (b) of the Corporations Act;
(ii) a sophisticated investor under
section 708(8)(c) or (d) of the Corporations Act and
that you have provided an accountants certificate to us
which complies with the requirements of
section 708(8)(c)(i) or (ii) of the Corporations Act
and related regulations before the offer has been made;
(iii) a person associated with the company under
section 708(12) of the Corporations Act; or
(iv) a professional investor within the meaning
of section 708(11)(a) or (b) of the Corporations Act,
and to the extent that you are unable to confirm or warrant that
you are an exempt sophisticated investor, associated person or
professional investor under the Corporations Act any offer made
to you under this document is void and incapable of
acceptance; and
(b) you warrant and agree that you will not offer any of
the securities for resale in Australia within 12 months of
those securities being issued unless any such resale offer is
exempt from the requirements to issue a disclosure document
under section 708 of the Corporations Act.
Hong
Kong
The securities may not be offered or sold in Hong Kong, by means
of any documents, other than (a) to professional
investors as defined in the Securities and Futures
Ordinance (Cap. 571, Laws of Hong Kong) and any rules made under
the Ordinance or (b) in other circumstances which do not
result in the document being a prospectus as defined
in the Companies Ordinance (Cap. 32, Laws of Hong Kong) or which
do not constitute an offer to the public within the meaning of
that Ordinance. No advertisement, invitation or document
relating to the securities may be issued or may be in the
possession of any person for the purpose of the issue, whether
in Hong Kong or elsewhere, which is directed at, or the contents
of which are likely to be read by, the public in Hong Kong
(except if permitted to do so under the laws of Hong Kong) other
than with respect to the securities which are intended to be
disposed of only to persons outside Hong Kong or only to
professional investors as defined in the Securities
and Futures Ordinance (Cap. 571, Laws of Hong Kong) or any rules
made under that Ordinance.
S-14
India
This prospectus supplement has not been and will not be
registered as a prospectus with the Registrar of Companies in
India or with the Securities and Exchange Board of India. This
prospectus supplement or any other material relating to these
securities is for information purposes only and may not be
circulated or distributed, directly or indirectly, to the public
or any members of the public in India and in any event to not
more than 50 persons in India. Further, persons into whose
possession this prospectus supplement comes are required to
inform themselves about and to observe any such restrictions.
Each prospective investor is advised to consult its advisors
about the particular consequences to it of an investment in
these securities. Each prospective investor is also advised that
any investment in these securities by it is subject to the
regulations prescribed by the Reserve Bank of India and the
Foreign Exchange Management Act and any regulations framed
thereunder.
Japan
No securities registration statement, or SRS, has been filed
under Article 4, Paragraph 1 of the Financial
Instruments and Exchange Law of Japan (Law No. 25 of 1948,
as amended), or FIEL, in relation to the securities. The
securities are being offered in a private placement to
qualified institutional investors
(tekikaku-kikan-toshika) under Article 10 of the Cabinet
Office Ordinance concerning Definitions provided in
Article 2 of the FIEL (the Ministry of Finance ordinance
No. 14, as amended), or QIIs, under Article 2,
Paragraph 3, Item 2 I of the FIEL. Any QII acquiring
the securities in this offer may not transfer or resell those
shares except to other QIIs.
Korea
The securities may not be offered, sold and delivered directly
or indirectly, or offered or sold to any person for reoffering
or resale, directly or indirectly, in Korea or to any resident
of Korea except pursuant to the applicable laws and regulations
of Korea, including the Korea Securities and Exchange Act and
the Foreign Exchange Transaction Law and the decrees and
regulations thereunder. The securities have not been registered
with the Financial Services Commission of Korea for public
offering in Korea. Furthermore, the securities may not be resold
to Korean residents unless the purchaser of the securities
complies with all applicable regulatory requirements (including
but not limited to government approval requirements under the
Foreign Exchange Transaction Law and its subordinate decrees and
regulations) in connection with the purchase of the securities.
Singapore
This prospectus supplement has not been registered as a
prospectus within the Monetary Authority of Singapore.
Accordingly, this prospectus supplement and any other document
or material in connection with the offer or sale, or invitation
for subscription or purchase, of the securities may not be
circulated or distributed, nor may the securities be offered or
sold, or be made the subject of an invitation for subscription
or purchase, whether directly or indirectly, to persons in
Singapore other than (i) to an institutional investor under
Section 274 of the Securities and Future Act,
Chapter 289 of Singapore, or the SFA, (ii) to a
relevant person as defined in Section 275(2) of
the SFA, or any person pursuant to Section 275 (1A), and in
accordance with the conditions, specified in Section 275 of
the SFA or (iii) otherwise pursuant to, and in accordance
with the conditions of, any other applicable provision of the
SFA.
Where the securities are subscribed and purchased under
Section 275 of the SFA by a relevant person which is:
(a) a corporation (which is not an accredited investor (as
defined in Section 4A of the SFA)) the sole business of
which is to hold investment and the entire share capital of
which is owned by one or more individuals, each of whom is an
accredited investor; or
(b) a trust (where the trustee is not an accredited
investor (as defined in Section 4A of the SFA)) whose sole
whole purpose is to hold investments and each beneficiary is an
accredited investor,
S-15
shares, debentures and units of shares and debentures of that
corporation or the beneficiaries rights and interest
(however described) in the trust shall not be transferable
within six months after that corporations or that trust has
acquired the securities under Section 275 of the SFA except:
(i) to an institutional investor under Section 274 of
the SFA or to a relevant person (as defined in
Section 275(2) of the SFA) and in accordance with the
conditions, specified in Section 275 of the SFA;
(ii) (in the case of a corporation) where the transfer
arises from an offer referred to in Section 275(1A) of the
SFA, or (in the case of a trust) where the transfer arises from
an offer that is made on terms that such rights or interests are
acquired at a consideration of not less than SGD200,000 (or its
equivalent in a foreign currency) for each transaction, whether
such amount is to be paid for in cash or by exchange of
securities or other assets;
(iii) where no consideration is or will be given for the
transfer; or
(iv) where the transfer is by operation of law.
By accepting this prospectus supplement, the recipient hereof
represents and warrants that such recipient is entitled to
receive it in accordance with the restrictions set forth above
and agrees to be bound by limitations contained herein. Any
failure to comply with these limitations may constitute a
violation of law.
Transfer
Agent
The transfer agent and registrar for our Common Stock is Wells
Fargo Bank, N.A.
LEGAL
MATTERS
The validity of our Common Stock offered by this prospectus
supplement and the accompanying prospectus will be passed upon
for us by Akin Gump Strauss Hauer & Feld LLP, Dallas,
Texas. Certain legal matters in connection with this offering
will be passed upon for the underwriter by Simpson
Thacher & Bartlett LLP, New York, New York.
WHERE YOU
CAN FIND MORE INFORMATION
We are subject to the reporting requirements of the Exchange Act
and file proxy statements and annual reports, quarterly reports,
current reports and other information with the Securities and
Exchange Commission, or the SEC. You may read and copy any
document that we file with the SEC at the SECs Public
Reference Room in Washington, D.C. located at
100 F Street N.E., Washington, D.C. 20549. You
may obtain information on the operation of the Public Reference
Room by calling the SEC at
1-800-SEC-0330
for further information on the public reference rooms. The SEC
maintains a Web site that contains reports, proxy and
information statements, and other information regarding
registrants that file electronically with the SEC. Our SEC
filings are also available free of charge at the SECs Web
site at www.sec.gov.
INFORMATION
INCORPORATED BY REFERENCE
The SEC allows us to incorporate by reference
information into this prospectus supplement, which means that we
can disclose important information about us by referring to
another document filed separately with the SEC. The information
incorporated by reference is considered to be a part of this
prospectus supplement. This prospectus supplement incorporates
by reference the documents and reports listed below and unless
specifically filed excludes portions of these documents that are
furnished under Item 2.02 or Item 7.01 of a Current
Report on
Form 8-K:
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(1)
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Annual Report on
Form 10-K
for the fiscal year ended December 31, 2009, filed on
March 10, 2010;
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(2)
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Current Report on
Form 8-K,
filed on January 19, 2010;
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S-16
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(3)
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Current Report on
Form 8-K,
filed on January 21, 2010;
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(4)
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Current Report on
Form 8-K,
filed on February 16, 2010;
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(5)
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Current Report on
Form 8-K,
filed on March 8, 2010;
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(6)
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Current Report on
Form 8-K,
filed on March 16, 2010;
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(7)
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Definitive Proxy Statement on Schedule 14A for the 2010
annual meeting of stockholders, filed on March 31, 2010;
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(8)
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Quarterly report on
Form 10-Q
for the quarter ended March 31, 2010, filed on May 6,
2010;
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(9)
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Current Report on
Form 8-K,
filed on May 14, 2010;
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(10)
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Quarterly report on
Form 10-Q
for the quarter ended June 30, 2010, filed on
August 5, 2010;
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(11)
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Quarterly report on
Form 10-Q
for the quarter ended September 30, 2010, filed on
November 5, 2010; and
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(12)
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The description of our Common Stock contained in the
registration statement on
Form 8-A,
filed on April 9, 2007.
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In addition, all documents subsequently filed by us pursuant to
Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act,
shall be deemed to be incorporated by reference in this
prospectus supplement and to be a part hereof from the date of
filing of such documents. Any statement contained in a document
incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of
this prospectus supplement to the extent that a statement
contained herein or in any subsequently filed document that also
is or is deemed to be incorporated by reference herein, as the
case may be, modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except
as so modified or superseded, to constitute a part of this
prospectus supplement.
We will provide, without charge, to any person, including any
beneficial owner, to whom a copy of this prospectus supplement
is delivered, upon oral or written request of such person, a
copy of any or all of the documents that have been incorporated
by reference in this prospectus supplement but not delivered
with the prospectus supplement, other than exhibits to such
other documents (unless such exhibits are specifically
incorporated by reference therein). We will furnish any exhibit
that is not specifically incorporated by reference upon the
payment of a specified reasonable fee, which fee will be limited
to our reasonable expenses in furnishing such exhibit. Requests
for such copies should be directed to Michael D. Cavalier,
Cinemark Holdings, Inc., 3900 Dallas Parkway, Suite 500,
Plano, Texas 75093; telephone number
(972) 665-1000.
S-17
PROSPECTUS
76,494,511 Shares
Cinemark Holdings,
Inc.
Common Stock
The selling stockholders named herein may offer and sell from
time to time up to 76,494,511 shares of our common stock,
par value $0.001 per share, or Common Stock, covered by this
prospectus. The selling stockholders will receive all of the
proceeds from any sales of the shares. We will not receive any
of the proceeds from the sales, but we will incur expenses in
connection with the offering.
Our registration of the shares of Common Stock covered by this
prospectus does not mean that the selling stockholders will
offer or sell any of the shares. The selling stockholders may
sell the shares of Common Stock covered by this prospectus in a
number of different ways and at varying prices. We provide more
information about how the selling stockholders may sell the
shares in the section entitled Plan of Distribution
beginning on page 6.
Our Common Stock is traded on The New York Stock Exchange, or
the NYSE, under the symbol CNK. On May 4, 2009 the last
reported sale price of our Common Stock on the NYSE was $8.98
per share.
Investing in our Common Stock involves risks. See Risk
Factors on page 3 of this prospectus and the risk
factors that are incorporated by reference from our Annual
Report on
Form 10-K
for the year ended December 31, 2008, for information that
you should consider before purchasing the securities offered by
this prospectus.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or passed upon the adequacy or accuracy of this
prospectus. Any representation to the contrary is a criminal
offense.
You should rely only on the information contained or
incorporated by reference in this prospectus or any supplement.
Neither we nor the selling stockholders have authorized anyone
to provide you with different information. You should not assume
that the information in this prospectus or any supplement is
accurate as of any date other than the date on the front of such
documents. The selling stockholders are not making an offer to
sell these securities in any jurisdiction where the offer or
sale is not permitted.
The date of this prospectus is May 6, 2009.
ABOUT
THIS PROSPECTUS
This prospectus is part of a registration statement on
Form S-3
that we filed with the Securities and Exchange Commission, or
the SEC, using a shelf registration process for the
delayed offering and sale of securities pursuant to
Rule 415 under the Securities Act of 1933, as amended, or
the Securities Act. Under the shelf process, the selling
stockholders may, from time to time, sell the offered securities
described in this prospectus in one or more offerings.
Additionally, under the shelf process, in certain circumstances,
we may provide a prospectus supplement that will contain
specific information about the terms of a particular offering by
one or more of the selling stockholders. We may also provide a
prospectus supplement to add information to, or update or change
information contained in, this prospectus.
This prospectus does not contain all of the information set
forth in the registration statement, portions of which we have
omitted as permitted by the rules and regulations of the SEC.
Statements contained in this prospectus as to the contents of
any contract or other document are not necessarily complete. You
should refer to the copy of each contract or document filed as
an exhibit to the registration statement for a complete
description.
You should rely only on the information contained in or
incorporated by reference into this prospectus and any
applicable prospectus supplements. Such documents contain
important information you should consider when making your
investment decision. We have not authorized anyone to provide
you with different or additional information. The selling
stockholders are offering to sell and seeking offers to buy
shares of our Common Stock only in jurisdictions in which offers
and sales are permitted. The information contained in this
prospectus is accurate only as of the date of this prospectus,
regardless of the time of delivery of this prospectus or any
sale of Common Stock.
Unless the context otherwise requires, Cinemark,
the Company, registrant, we,
us, our and similar names refer to
Cinemark Holdings, Inc. and our subsidiaries.
THE
COMPANY
We are a leader in the motion picture exhibition industry with
420 theatres and 4,846 screens in the U.S. and
Latin America as of March 31, 2009. Our circuit is the
third largest in the U.S. with 295 theatres and
3,814 screens in 39 states. We are the most
geographically diverse circuit in Latin America with
125 theatres and 1,032 screens in 12 countries.
Our principal executive offices are located at 3900 Dallas
Parkway, Suite 500, Plano, Texas 75093. The telephone
number of our principal executive office is
(972) 665-1000.
We maintain a Web site at www.cinemark.com on which we post our
key corporate governance documents, including our board
committee charters and our code of business conduct and ethics.
We do not incorporate the information on our Web site into this
prospectus and participants should not consider any information
on, or that can be accessed through, our Web site as part of
this prospectus.
RISK
FACTORS
Our business is subject to significant risks. You should
carefully consider the risks and uncertainties incorporated by
reference in this prospectus, including the risks and
uncertainties described under the caption Risk
Factors included in Part I, Item 1A of our
Annual Report on
Form 10-K
for the year ended December 31, 2008, which is incorporated
by reference in this prospectus, and which may be amended,
supplemented or superceded from time to time by other reports we
file with the SEC in the future. For a description of these
reports and documents, and information about where you can find
them, see the sections entitled Where You Can Find More
Information and Incorporation of Certain Information
by Reference in this prospectus. The risks and
uncertainties described in this prospectus and the documents
incorporated by reference herein are not the only ones facing
us. Additional risks and uncertainties that we do not presently
know about or that we currently believe are not material may
also adversely affect our business. If any of the risks and
uncertainties described in this prospectus or the documents
incorporated by reference herein actually occur, our business,
financial condition and results of operations could be adversely
affected in a material way. This could cause the trading price
of our Common Stock to decline, perhaps significantly, and you
may lose part or all of your investment.
3
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus includes forward-looking statements
based on our current expectations, assumptions, estimates and
projections about our business and our industry. They include
statements relating to:
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future revenues, expenses and profitability;
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the future development and expected growth of our business;
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projected capital expenditures;
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attendance at movies generally or in any of the markets in which
we operate;
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the number or diversity of popular movies released and our
ability to successfully license and exhibit popular films;
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national and international growth in our industry;
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competition from other exhibitors and alternative forms of
entertainment; and
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determinations in lawsuits in which we are defendants.
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You can identify forward-looking statements by the use of words
such as may, should, could,
estimates, predicts,
potential, continue,
anticipates, believes,
plans, expects, future and
intends and similar expressions which are intended
to identify forward-looking statements. These statements are not
guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond our
control and difficult to predict and could cause actual results
to differ materially from those expressed or forecasted in the
forward-looking statements. In evaluating forward-looking
statements, you should carefully consider the risks and
uncertainties described in Risk Factors and
elsewhere in this prospectus. All forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the cautionary statements and
risk factors contained in this prospectus. Forward-looking
statements contained in this prospectus reflect our view only as
of the date of this prospectus. We do not undertake any
obligation, other than as required by law, to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
USE OF
PROCEEDS
All of the shares of Common Stock offered by the selling
stockholders pursuant to this prospectus will be sold by the
selling stockholders for their own accounts. The Company will
not receive any of the proceeds from these sales. The Company
will pay the costs, expenses and fees incurred in connection
with the registration under the Securities Act of the offered
shares.
DETERMINATION
OF OFFERING PRICE
This offering is being made solely to allow the selling
stockholders to offer and sell shares of our Common Stock to the
public. The selling stockholders may offer for resale some of
their shares at the time and price that they choose. On any
given day, the price per share is likely to be based on the
market price of our Common Stock, as quoted on the NYSE on the
date of sale, unless shares are sold in private transactions.
Consequently, we cannot currently determine the price at which
the shares offered for resale pursuant to this prospectus may be
sold.
SELLING
SECURITY HOLDERS
This prospectus relates to the resale from time to time of up to
a total of 76,494,511 shares of Common Stock by the selling
stockholders. The following table sets forth information with
respect to the current beneficial ownership of the selling
stockholders, the number of shares of Common Stock being offered
hereby by each selling stockholder and information with respect
to shares to be beneficially owned by each selling stockholder
after completion of this offering. The percentages in the
following table reflect the shares
4
beneficially owned by the selling stockholders as a percentage
of the total number of shares of our Common Stock outstanding as
of April 30, 2009.
The selling stockholders have not, except as described in the
footnotes below, held any position or office or had any other
material relationship with us within the past three years, other
than their ownership of shares of our Common Stock as described
below and the issuance of the shares described in this
prospectus.
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Shares Beneficially
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Shares Beneficially
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Shares Offered
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Owned after
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Owned Prior to Offering
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Hereby
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Completion of Offering(1)
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Name
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Number
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Percentage
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Number
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Number
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Percentage
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Madison Dearborn Capital Partners IV, L.P.(2)
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49,881,014
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45.65
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%
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49,881,014
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Syufy Enterprises LP(3)
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8,172,096
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7.48
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%
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8,172,096
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Quadrangle Capital Partners LP(4)
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3,384,500
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3.09
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%
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5,341,206
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Quadrangle Capital Partners A LP(4)
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1,368,036
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1.25
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%
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1,368,036
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Quadrangle (Cinemark) Capital Partners LP(4)
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393,293
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0.36
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%
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393,293
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Quadrangle Select Partners LP(4)
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195,377
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0.18
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%
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195,377
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Lee Roy Mitchell(5)
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6,703,750
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6.13
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%
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6,681,100
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22,650
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0.02
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%
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The Mitchell Special Trust(6)
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6,419,095
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5.87
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%
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6,419,095
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(1) |
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Assumes that each selling stockholder disposes of all the shares
of Common Stock covered by this prospectus and does not acquire
beneficial ownership of any additional shares. The registration
of these shares does not necessarily mean that the selling
stockholders will sell all or any portion of their shares
covered by this prospectus. |
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(2) |
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The shares beneficially owned by Madison Dearborn Capital
Partners IV, L.P., or MDCP, were acquired by MDCP in connection
with the MDP Merger. The MDP Merger refers to the transaction on
April 2, 2004 pursuant to which an affiliate of Madison
Dearborn Partners, LLC, or MDP, acquired approximately 83% of
the capital stock of Cinemark, Inc, one of our wholly-owned
subsidiaries. In the transaction, a newly-formed subsidiary
owned by an affiliate of MDP was merged with and into Cinemark,
Inc. with Cinemark, Inc. continuing as the surviving
corporation. On August 2, 2006, the Company was formed in
connection with the planned acquisition of Century Theatres,
Inc., or Century Theatres, by Cinemark USA, Inc. pursuant to a
stock purchase agreement, dated August 7, 2006. The
acquisition of Century Theatres was completed on October 5,
2006 pursuant to a Contribution and Exchange Agreement, dated
August 7, 2006, among the then stockholders of Cinemark,
Inc., whereby the parties exchanged their shares of Class A
common stock of Cinemark, Inc. for shares of Common Stock of the
Company. The shares beneficially owned by MDCP may be deemed to
be beneficially owned by Madison Dearborn Partners IV, LP, or
MDP IV, the sole general partner of MDCP. John A. Canning, Jr.,
Paul J. Finnegan and Samuel M. Mencoff are the sole members of a
limited partner committee of MDCP that has the power, acting by
majority vote, to vote or dispose of the shares beneficially
held by MDCP. Benjamin Chereskin, a current director of the
Company, is a limited partner of MDP IV and a Managing Director
and Member of MDP (the general partner of MDP IV), and therefore
may be deemed to share beneficial ownership of the shares
beneficially owned by MDCP. Vahe Dombalagian, a current director
of the Company, is a limited partner of MDP IV and a Managing
Director of MDP, and therefore may be deemed to share beneficial
ownership of the shares beneficially owned by MDCP.
Messrs. Canning, Finnegan, Mencoff, Chereskin and
Dombalagian and MDP IV each hereby disclaims any beneficial
ownership of any shares beneficially owned by MDCP. |
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Raymond Syufy, a current director of the Company, and Joseph
Syufy, a former director of the Company, are executive officers
of the general partner of Syufy Enterprises LP and they may
therefore be deemed to share beneficial ownership of the
8,172,096 shares owned by Syufy Enterprises LP. Raymond
Syufy and |
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Joseph Syufy each expressly disclaims beneficial ownership of
the shares owned by Syufy Enterprises LP. Our subsidiary,
Century Theatres, leases 23 theatres and two parking
facilities from Syufy Enterprises LP or affiliates of Syufy
Enterprises LP. |
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(4) |
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The shares beneficially owned by Quadrangle Capital Partners LP,
Quadrangle Select Partners LP, Quadrangle Capital Partners A LP
and Quadrangle (Cinemark) Capital Partners LP were acquired from
MDCP in December 2004. Peter Ezersky, a current director of the
Company, is a Managing Member of Quadrangle GP Investors LLC,
which is the general partner of Quadrangle GP Investors LP.
Quadrangle GP Investors LP is the general partner of Quadrangle
Capital Partners LP, Quadrangle Select Partners LP, Quadrangle
Capital Partners A LP and Quadrangle (Cinemark) Capital Partners
LP, and he may therefore be deemed to share beneficial ownership
of the 3,384,500 shares owned by Quadrangle Capital
Partners LP, the 195,377 shares owned by Quadrangle Select
Partners LP, the 1,368,036 shares owned by Quadrangle
Capital Partners A LP and the 393,293 shares owned by
Quadrangle (Cinemark) Capital Partners LP. Mr. Ezersky
expressly disclaims beneficial ownership of the shares owned by
Quadrangle Capital Partners LP, Quadrangle Select Partners LP,
Quadrangle Capital Partners A LP and Quadrangle (Cinemark)
Capital Partners LP. |
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Lee Roy Mitchell has served as the Chairman of the Board of the
Company since March 1996 and as a director since our inception
in 1987. Mr. Mitchell served as our Chief Executive Officer
from our inception until December 2006. |
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(6) |
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Lee Roy Mitchell is co-trustee of The Mitchell Special Trust. |
PLAN OF
DISTRIBUTION
We are registering 76,494,511 shares of our Common Stock
for possible sale by the selling stockholders. Unless the
context otherwise requires, as used in this prospectus,
selling stockholders include the selling
stockholders named in the table in the Selling Security
Holders section above and donees, pledgees, transferees or
other
successors-in-interest
selling shares received from the selling stockholders as a gift,
pledge, partnership distribution or other transfer after the
date of this prospectus.
The selling stockholders may offer and sell all or a portion of
the shares covered by this prospectus from time to time, in one
or more or any combination of the following transactions:
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on the NASDAQ Global Select Market, in the
over-the-counter
market or on any other national securities exchange on which our
shares are listed or traded;
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in privately negotiated transactions;
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in underwritten transactions;
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in a block trade in which a broker-dealer will attempt to sell
the offered shares as agent but may position and resell a
portion of the block as principal to facilitate the transaction;
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through purchases by a broker-dealer as principal and resale by
the broker-dealer for its account pursuant to this prospectus;
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in ordinary brokerage transactions and transactions in which the
broker solicits purchasers; and
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through the writing of options (including put or call options),
whether the options are listed on an options exchange or
otherwise.
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The selling stockholders may sell the shares at prices then
prevailing or related to the then current market price or at
negotiated prices. The offering price of the shares from time to
time will be determined by each of the selling stockholders and,
at the time of the determination, may be higher or lower than
the market price of our Common Stock on the NYSE.
The shares may be sold directly or through broker-dealers acting
as principal or agent, or pursuant to a distribution by one or
more underwriters on a firm commitment or best-efforts basis.
The selling stockholders may also enter into hedging
transactions with broker-dealers. In connection with such
transactions, broker-
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dealers of other financial institutions may engage in short
sales of our Common Stock in the course of hedging the positions
they assume with the selling stockholders. The selling
stockholders may also enter into options or other transactions
with broker-dealers or other financial institutions which
require the delivery to such broker-dealer or other financial
institution of shares offered by this prospectus, which shares
such broker-dealer or other financial institution may resell
pursuant to this prospectus (as supplemented or amended to
reflect such transaction). In connection with an underwritten
offering, underwriters or agents may receive compensation in the
form of discounts, concessions or commissions from the selling
stockholders or from purchasers of the offered shares for whom
they may act as agents. In addition, underwriters may sell the
shares to or through dealers, and those dealers may receive
compensation in the form of discounts, concessions or
commissions from the underwriters
and/or
commissions from the purchasers for whom they may act as agents.
The selling stockholders and any underwriters, dealers or agents
participating in a distribution of the shares may be deemed to
be underwriters within the meaning of the Securities
Act and any profit on the sale of the shares by the selling
stockholders and any commissions received by broker-dealers may
be deemed to be underwriting commissions under the Securities
Act.
The selling stockholders may agree to indemnify an underwriter,
broker-dealer or agent against certain liabilities related to
the selling of the Common Stock, including liabilities arising
under the Securities Act. Under the Registration Agreement dated
August 7, 2006, we have agreed to indemnify the selling
stockholders against certain liabilities related to the sale of
the Common Stock, including certain liabilities arising under
the Securities Act.
Under the Registration Agreement, we have also agreed to pay the
costs, expenses and fees of registering the shares of Common
Stock.
The selling stockholders have advised us that none of them have
entered into any agreements, understandings or arrangements with
any underwriters or broker-dealers regarding the sale of its
respective shares. Upon our notification by a selling
stockholder that any material arrangement has been entered into
with an underwriter or broker-dealer for the sale of shares
through a block trade, special offering, exchange distribution,
secondary distribution or a purchase by an underwriter or
broker-dealer, we will file a supplement to this prospectus, if
required, pursuant to Rule 424(b) under the Securities Act,
disclosing certain material information, including:
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the name of the selling stockholder;
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the number of shares being offered;
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the terms of the offering;
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the names of the participating underwriters, broker-dealers or
agents;
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any discounts, commissions or other compensation paid to
underwriters or broker-dealers and any discounts, commissions or
concessions allowed or re-allowed or paid by any underwriters to
dealers;
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the public offering price; and
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other material terms of the offering.
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In addition, upon being notified by the selling stockholders
that a donee, pledgee, transferee or other
successor-in-interest
intends to sell more than 500 shares, we will, to the
extent required, promptly file a supplement to this prospectus
to name specifically such person as a selling stockholder.
The selling stockholders are subject to the applicable
provisions of the Securities Exchange Act of 1934, as amended,
or Exchange Act, and the rules and regulations under the
Exchange Act, including Regulation M. This regulation may
limit the timing of purchases and sales of any of the shares of
Common Stock offered in this prospectus by the selling
stockholders. The anti-manipulation rules under the Exchange Act
may apply to sales of shares in the market and to the activities
of the selling stockholders and their affiliates. Furthermore,
Regulation M may restrict the ability of any person engaged
in the distribution of the shares to engage in market-making
activities for the particular securities being distributed for a
period of up to five business days
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before the distribution. The restrictions may affect the
marketability of the shares and the ability of any person or
entity to engage in market-making activities for the shares.
To the extent required, this prospectus may be amended
and/or
supplemented from time to time to describe a specific plan of
distribution. Instead of selling the shares of Common Stock
under this prospectus, the selling stockholder may sell the
shares of Common Stock in compliance with the provisions of
Rule 144 under the Securities Act, if available, or
pursuant to other available exemptions from the registration
requirements of the Securities Act.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The SEC allows us to incorporate by reference
information into this prospectus, which means that we can
disclose important information about us by referring to another
document filed separately with the SEC. The information
incorporated by reference is considered to be a part of this
prospectus. This prospectus incorporates by reference the
documents and reports listed below other than portions of these
documents that are furnished under Item 2.02 or
Item 7.01 of a Current Report on
Form 8-K:
(1) Annual Report on
Form 10-K
for the fiscal year ended December 31, 2008, filed on
March 13, 2009;
(2) Definitive Proxy Statement on Schedule 14A for the
2009 annual meeting of stockholders, filed on March 25,
2009;
(3) Current Report on
Form 8-K,
filed on February 26, 2009 and
(4) A description of our Common Stock contained in the
registration statement on
Form 8-A,
filed with the SEC on April 9, 2007.
In addition, all documents subsequently filed by us pursuant to
Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act,
shall be deemed to be incorporated by reference in this
prospectus and to be a part hereof from the date of filing of
such documents. Any statement contained in a document
incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of
this prospectus to the extent that a statement contained herein
or in any subsequently filed document that also is or is deemed
to be incorporated by reference herein, as the case may be,
modifies or supersedes such statement. Any such statement so
modified or superseded shall not be deemed, except as so
modified or superseded, to constitute a part of this prospectus.
We will provide, without charge, to any person, including any
beneficial owner, to whom a copy of this prospectus is
delivered, upon oral or written request of such person, a copy
of any or all of the documents that have been incorporated by
reference in this prospectus but not delivered with the
prospectus, other than exhibits to such other documents (unless
such exhibits are specifically incorporated by reference
therein). We will furnish any exhibit upon the payment of a
specified reasonable fee, which fee will be limited to our
reasonable expenses in furnishing such exhibit. Requests for
such copies should be directed to Michael D. Cavalier, Cinemark
Holdings, Inc., 3900 Dallas Parkway, Suite 500, Plano,
Texas 75093; telephone number
(972) 665-1000.
WHERE YOU
CAN FIND MORE INFORMATION
We are subject to the reporting requirements of the Exchange Act
and file proxy statements and annual reports, quarterly reports,
current reports and other information with the SEC. You may read
and copy any document that we file with the SEC at the
SECs Public Reference Room in Washington, D.C.
located at 100 F Street N.E., Washington, D.C.
20549. You may obtain information on the operation of the Public
Reference Room by calling the SEC at
1-800-SEC-0330
for further information on the public reference rooms. The SEC
maintains a Web site that contains reports, proxy and
information statements, and other information regarding
registrants that file electronically with the SEC. Our SEC
filings are also available free of charge at the SECs Web
site at www.sec.gov.
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We have filed with the SEC a registration statement on
Form S-3
under the Securities Act for the shares of Common Stock being
offered by the selling stockholders. This prospectus does not
contain all of the information in the registration statement and
the exhibits and schedules that were filed with the registration
statement. For further information with respect to us and our
Common Stock, we refer you to the registration statement and the
exhibits that were filed with the registration statement.
Statements contained or incorporated by reference in this
prospectus about the contents of any contract or any other
document that is filed as an exhibit to the registration
statement are not necessarily complete, and we refer you to the
full text of the contract or other document filed as an exhibit
to the registration statement. Anyone may obtain the
registration statement and its exhibits and schedules from the
SEC.
LEGAL
MATTERS
The validity of the shares of Common Stock offered pursuant to
this prospectus will be passed upon by Akin Gump Strauss
Hauer & Feld LLP, Dallas, Texas.
EXPERTS
The financial statements, and the related financial statement
schedule, incorporated in this prospectus by reference from the
Companys Annual Report on
Form 10-K,
and the effectiveness of Cinemark Holdings Inc.s internal
control over financial reporting have been audited by
Deloitte & Touche LLP, an independent registered
public accounting firm, as stated in their reports, which are
incorporated herein by reference. Such financial statements and
financial statement schedule have been so incorporated in
reliance upon the reports of such firm given upon their
authority as experts in accounting and auditing.
The financial statements of National CineMedia, LLC,
incorporated in this prospectus by reference from Cinemark
Holdings, Inc.s Annual Report on
Form 10-K
have been audited by Deloitte & Touche LLP, an
independent registered public accounting firm, as stated in
their report which is also incorporated herein by reference.
Such financial statements have been so incorporated in reliance
upon the report of such firm given upon their authority as
experts in accounting and auditing.
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10,000,000 Shares
Common Stock
Prospectus
Supplement
November 8, 2010