Regal to launch term loan amendment to extend maturity, trim pricing

By Sara Rosenberg

New York, Feb. 10 - Regal Cinemas Corp. is scheduled to hold a lender call on Friday regarding an amendment to its term loan to extend the maturity to August 2017 and reduce pricing, according to a market source.

Under the proposal, pricing on the amended term loan (BB-) will range from Libor plus 300 basis points to 325 bps based on the company's consolidated leverage ratio, with initial pricing being Libor plus 325 bps, the source said. There's no Libor floor.

The amended term loan would include 101 soft call protection for one year.

Credit Suisse is the lead bank on the deal.

Currently, the originally sized $1.25 billion term loan matures on Nov. 19, 2016 and has pricing that ranges from Libor plus 350 bps to 375 bps based on leverage. Initial pricing on the loan when it was completed in May 2010 was Libor plus 350 bps.

The company said in a 424B3 filed with the Securities and Exchange Commission on Thursday that it plans on repaying some of its senior credit facility borrowings with proceeds from a new offering of $100 million of 9 1/8% senior notes.

At Sept. 30, as adjusted for the paydowns from a notes offering in January and this current bond deal, the term loan, net of debt discount, was $997.8 million.

Remaining proceeds from the bond deal will be used for general corporate purposes, which may include the redemption, repayment or repurchase of debt.

Closing on the offering is expected to occur on Feb. 15, and the amendment is expected to be completed concurrently with the closing on the bonds.

Regal Cinemas is a subsidiary of Regal Entertainment Group, a Knoxville, Tenn.-based motion picture exhibitor.

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