Regal Cinemas $315 million term loan D launching Tuesday

By Sara Rosenberg

New York, May 19 - Regal Cinemas Inc. is scheduled to launch a $315 million term loan D due 2009 on Tuesday, according to market source. Credit Suisse First Boston is the lead bank on the deal.

Pricing on the term loan D is Libor plus 275 basis points, sources said.

Proceeds, combined with about $190 million in cash, a small revolver drawdown of approximately $13 million and a $125 million convertible notes offering, will be used to pay a portion of an extraordinary dividend to the company's stockholders of approximately $4.35 to $4.55 per share of its Class A and Class B common stock, equivalent to $600 million to $625 million.

Subsequently, Regal Entertainment will reduce its quarterly dividend by about 20%.

Regal said the one-time dividend of $4.35 to $4.55 per share will allow investors in its 2002 reorganization to cash in on their investment without selling stock.

Standard & Poor's rated the loan BB-.

Regal Entertainment Group is a Centennial, Colo. theaters circuit.

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