Regal Cinemas flexes $988 million term loan to Libor plus 250 bps

By Sara Rosenberg

New York, April 11 - Regal Cinemas Corp. reduced pricing on its $988 million first-lien term loan due Aug. 23, 2017 to Libor plus 250 basis points with a step-up to Libor plus 275 bps if opco leverage is greater than 3 times, from Libor plus 275 bps with a step-up to Libor plus 300 bps, according to a market source.

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

Proceeds will be used to reprice an existing term loan from 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.

Commitments are due at noon ET on Tuesday, 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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