Moody's affirms Regal

Moody's Investors Service said it affirmed Regal Entertainment Group's Ba3 corporate family and Ba3 probability of default ratings and the other instrument ratings following the company's offering of new $190 million 6.25% senior convertible notes due 2011.

The proceeds of the new issue will be used to repurchase/repay the company's existing3 ¾% convertible senior notes due May 2008 and for general corporate purposes, the agency said.

The outlook remains stable.

According to Moody's, Regal's Ba3 corporate family rating reflects high leverage of 5.5 times debt-to-EBITDA and expectations that dividends will continue to consume much of Regal's free cash flow.

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