Marcus enters $225 million five-year revolver at Libor plus 97.5 bps

By Wendy Van Sickle

Columbus, Ohio, Jan. 9 – Marcus Corp. entered into on Thursday a five-year credit agreement providing for an up to $225 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent and U.S. Bank NA acted as syndication agent.

Wells Fargo Bank, NA and Bank of America, NA acted as co-documentation agents.

This credit agreement replaces the company's existing $225 million revolver. At closing, the company borrowed $68 million under the new revolver to refinance borrowings outstanding under the existing revolver.

Marcus may request an increase to the revolver by up to $125 million.

There is a facility fee of 12.5 basis points to 25 bps, payable quarterly, depending on the consolidated debt to total capitalization ratio. Borrowings bear interest at Libor plus 85 bps to 137.5 bps, based on the same ratio.

Initially, the facility fee is 15 bps and the margin above Libor is 97.5 bps.

Covenants under the loan limit the company's permissible consolidated debt to total capitalization ratio to a maximum of 0.55 to 1.00. Marcus is also required to maintain a minimum fixed-charge coverage ratio of 3.0 to 1.0.

Proceeds will be used for general corporate purposes.

The Milwaukee-based company owns movie theaters and hotels.

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