Vue gets £833 million of seven-year loans for refinancing, asset buy

By Susanna Moon

Chicago, Nov. 21 – Vue International said it launched £833 million equivalent of term loans due December 2025 through Vue International Bidco plc.

The financing consists of a €480 million senior secured term loan B, a £300 million senior secured term loan B and €114 million delayed-draw tranche senior secured term loan B.

JPMorgan, Lloyds Bank and Morgan Stanley are the joint global coordinators, mandated lead arrangers and bookrunners on the financing.

The financing follows the CineStar acquisition and will refinance Vue's capital structure “with the objective of increasing maturities, reducing cost of debt and increasing flexibility in addition to raising proceeds for the CineStar acquisition,” according to a company announcement.

The company’s existing £60 million equivalent super senior revolving credit facility will also be refinanced on a senior secured basis and upsized as part of the financing, the release noted.

Proceeds will be used to help refinance Vue's debt including its €120 million senior secured term loan B, €360 million senior secured floating-rate notes and £300 million senior secured notes.

The company also will use proceeds to finance the majority of the initial purchase price of the CineStar acquisition for €130 million and to fund CineStar new site capital expenditures.

Vue said it is also issuing a conditional redemption notice for its notes.

The transaction will be leverage neutral to Vue's last reported quarter ended August.

Vue is an entertainment services provider based in London.

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