Regal Cinemas launches $988 million term loan at Libor plus 275 bps

By Sara Rosenberg

New York, April 9 - Regal Cinemas Corp. held a call at 3:30 p.m. ET on Tuesday to launch a repricing of its $988 million first-lien term loan due Aug. 23, 2017 that is talked at Libor plus 275 basis points with a step-up to Libor plus 300 bps if opco leverage is greater than 3 times, according to a market source.

The repriced loan has no Libor floor, a par offer price and 101 soft call protection for one year, the source said.

By comparison, current pricing on the term loan is Libor plus 300 bps with no Libor floor and a step-up to Libor plus 325 bps when opco leverage is more than 3 times.

With the repricing, the company is also seeking to remove financial covenants from the term loan, making the tranche covenant-light, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

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

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