S&P: Regal Entertainment unchanged

Standard & Poor's said that the declaration by Regal Entertainment Group (BB-/negative) of a special dividend to common shareholders of $2.00 per share, totaling about $300 million, does not affect the ratings on the company at this time.

Regal will fund a significant portion of the special dividend from after-tax proceeds received in connection with National CineMedia Inc.'s Feb. 13, estimated at $445 million, the agency said, noting that pro forma cash balances after the special dividend will be $300 million.

The modification of exhibitor service agreements related to the IPO will reduce Regal's revenue and EBITDA, S&P said.

However, Regal will still retain an ownership stake in National CineMedia LLC and receive dividends from the company, the agency added.

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