Moody’s rates Regal Cinemas loan Ba1

Moody's Investors Service said it assigned a Ba1 instrument-level rating to the proposed senior secured term loan of Regal Cinemas Corp., a wholly owned subsidiary of Regal Entertainment Group (Regal).

Proceeds will be used to refinance the existing $965.8 million term loan and an additional $150 million will be raised to support general corporate purposes, including potential tuck-in acquisitions.

Pro forma for the add-on, excluding any potential EBITDA from acquisitions, Moody's adjusted debt/EBITDA is 4.6 times as of March 31, 2017, which remains within its 5 times tolerance for the rating.

The new term loan coupon payment will be 50 basis points lower. All other terms under the amendment will remain wholly or materially unchanged, including maturity.

Regal's B1 corporate family rating, B3 senior unsecured rating and SGL-1 speculative grade liquidity rating are unchanged.

The outlook remains stable.

© 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.