By Rebecca Melvin
New York, March 5 - Regal Entertainment Group priced $190 million of three-year bullet convertibles Wednesday before the open at par to yield 6.25% with an initial conversion premium of 18%, according to a syndicate source.
The senior notes priced on the cheap end of talk, which was for a coupon of 5.75% to 6.25% with an initial conversion premium of 18% to 22%.
Credit Suisse was the bookrunner for the Rule 144A deal, with Lehman Brothers a co-manager. There is a $20 million over-allotment option.
There is contingent conversion subject to a 130% trigger.
Proceeds will be used for general corporate purposes, which Regal expects will include the repurchase of all or a portion of its outstanding 3.75% convertible senior notes due 2008 or the repayment of the principal amount of those notes at maturity.
Regal may acquire the 3.75% notes through open market purchases, privately negotiated transactions or conversions.
About $6.3 million of proceeds will be used for convertible note hedge and warrant transactions.
Knoxville, Tenn.-based Regal Entertainment is a movie theater operator.
| Issuer: | Regal Entertainment Group
|
| Issue: | Convertible senior notes
|
| Amount: | $190 million
|
| Greenshoe: | $20 million
|
| Maturity: | 2011
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 18%
|
| Conversion price: | $23.03
|
| Contingent conversion: | 130% trigger
|
| Bookrunner: | Credit Suisse
|
| Co-manager: | Lehman Brothers
|
| Pricing date: | March 4
|
| Settlement date: | March 10
|
| Distribution: | Rule 144A
|
| Price talk: | 5.75% to 6.25%, up 18% to 22%
|
| Stock symbol: | NYSE: RGC
|
| Stock price: | $19.52 at close March 4
|
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