Fitch lifts Regal notes to B+

Fitch Ratings said it affirmed the issuer default ratings of Regal Entertainment Group and Regal Cinemas Corp. at B+.

Fitch also upgraded the issue ratings of Regal to B+ with a recovery rating of RR4 from B with a recovery rating of RR5.

The agency also affirmed Regal Cinemas' senior secured credit facility at BB+ with a recovery rating of RR1 and senior unsecured notes at BB with a recovery rating of RR2.

The outlook remains stable.

On Feb. 25, Regal tendered for any and all of its $311.4 million 9 1/8% senior notes due 2018 and the $400 million of Regal Cinema's 8 5/8% senior notes due 2019. At the same time, Regal launched a new bond offering to fund the tender.

On March 11, Regal closed its new bond offering, $775 million of 5¾% senior notes due 2022 and announced that it had received early tenders for 71% and 89% of Regal's and Regal Cinema's senior notes. In addition, Regal announced that any notes not tendered by March 25, will be called for redemption at 100% plus a make-whole premium, Fitch said. The redemption of the remaining notes is expected to occur April 10, the agency said.

The rating on the notes reflects the improved recovery prospects following the planned note redemptions, Fitch said.

The company's ratings also consider a belief that movie exhibition will continue to be a key promotion window for the movie studios' biggest and most profitable releases, the agency said.

© 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.