Regal Entertainment planning to opportunistically refinance remaining 2011, 2012 maturities

By Jennifer Lanning Drey

Portland, Ore., May 26 - Regal Entertainment Group will look to opportunistically refinance its remaining near-term maturities, which include $200 million of convertibles maturing in 2011 and another $50 million of debt due in 2012, David Ownby, chief financial officer of Regal, said during a Wednesday investor presentation in New York.

"Once we have those things behind us, then I think we will just return to our normal thinking about capital allocation, and we'll make the best decision for the shareholders with all of the information we have in front of us at that time," Ownby said while speaking at the Barclays Capital Global Communications, Media and Technology Conference.

Historically, Regal has used its cash to either grow the business through acquisitions or return value to shareholders through dividends, he noted.

In 2008, the company decided it should complete the financing of its conversion to digital and take all near- and mid-term refinancing risks off the table before making further major capital decisions, Ownby said.

Those objectives are now mostly complete, after the company extended its bank facility this month to late-2016 from mid-2013. Additionally, the digital financing was completed earlier this year.

Regarding further acquisition opportunities, Regal's chief executive officer Amy Miles said she believes the industry still has room for more consolidation.

In particular, she mentioned potential opportunities to acquire regional circuits that may not be wiling to make the digital conversion.

"We still see opportunities over time to continue to be in a position to execute accretive acquisitions. We also have our balance sheet in a position where we have some dry powder, should those opportunities be presented to Regal," Miles said.

Regal is a Knoxville, Tenn.-based motion picture exhibitor.

© 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.