S&P lifts Regal debt to BB-

Standard & Poor's said it revised its recovery rating on Regal Cinemas Corp.'s secured debt to 2, indicating an expectation of substantial (70% to 90%) recovery for secured lenders in the event of a payment default, from 3 and raised the issue-level rating on this debt to BB- from B+ in accordance with its notching criteria for a 2 recovery rating.

The corporate credit ratings of Regal Cinemas and Regal Entertainment Group remain B+.

The outlook is stable.

The agency said the ratings change reflects Regal's announcement that it upsized the principal amount of its 8 5/8% senior notes due 2019 to $400 million from $300 million and that it intends to use all of the proceeds to repay a portion of its existing senior secured credit facility.

This results in a reduction in the amount of secured debt outstanding under S&P's simulated default scenario and a subsequent increase in recovery for secured lenders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.