Moody's: Regal loan Ba2

Moody's Investors Service said it assigned a Ba2 rating to Regal Cinemas Corp.'s updated senior secured $1 billion term loan facility.

Regal Cinemas is an operating and holding subsidiary of publicly traded Regal Entertainment Group, Moody's said. Since the new term loan facility replaces an existing facility of the same size, the transaction is neutral to Regal's consolidated credit profile. Its B1 corporate family rating and B1 probability of default rating remain unchanged, the agency said.

The new facility has two positive features, reduced pricing and a slightly extended term, but is otherwise unchanged from the existing facility, Moody's said.

The refinance transaction follows the recent add-on note issue that was viewed as having positive implications, extending weighted average term to maturity of the company's debt and rebalancing Regal's consolidated credit profile more evenly among senior secured, senior unsecured and senior unsecured holding company funding sources, the agency said.

The ratings reflect the trade-offs between the relative stability and the small magnitude of the company's cash flow stream, Moody's added.

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