Regal Cinemas pulls bond deal in light of high demand for syndicated loan

By Paul A. Harris

St. Louis, April 26 - Regal Entertainment Group plans to upsize its new credit facility to $1.75 billion from $1.35 billion and pull its proposed $400 million subordinated notes offering through Regal Cinemas Bonds Corp., according to a company news release Monday.

According to an informed source, the company elected to abandon the high-yield component of its debt reduction and dividend payment financing because of strong interest among investors in participating in the leveraged loan.

Credit Suisse First Boston, the lead arranger of the credit facility, also had the bookrunning mandate on the abandoned bond deal.

Regal Entertainment's credit facility is comprised of a $1.65 billion term loan B, upsized from $1.25 billion, and $100 million five-year revolver. Both portions are in the market at Libor plus 275 basis points.

Regal Entertainment is a Centennial, Colo.-based theater circuit owner-operator.

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