Fitch rates Regal Cinemas loan BB+/RR1

Fitch Ratings said it assigned a BB+/RR1 rating to the proposed new incremental term loan issued by Regal Entertainment Group's wholly owned subsidiary, Regal Cinemas Corp.

Regal is refinancing its existing term loan B and the proceeds will be used to refinance the existing $952 million term loan B. Additionally Regal is issuing an incremental $150 million term loan and will use the proceeds for general corporate purposes including possible acquisitions.

Fitch noted that the issuance will only modestly increase leverage to 3.8 times, up from 3.6 times as of the last-12-months (LTM) period ended March 31. As such, the agency views the refinancing and incremental term loan issuance as neutral to the credit profile.

The new term loan B and incremental term loan will mature in April 2022 and will reduce the interest rate to Libor plus 200 basis points from Libor plus 250 bps.

Roughly $2.3 billion of debt was outstanding as of March 31.

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