New Issue: Regal sells $150 million add-on to 9 1/8% notes due 2018 at 104.5 to yield 8.107%

By Paul A. Harris

St. Louis, Jan. 4 - Regal Entertainment Group priced an upsized $150 million add-on to its 9 1/8% senior notes due Aug. 15, 2018 (confirmed B3/existing B/) at 104.5 on Tuesday, according to an informed source.

The reoffer price came at the rich end of the 104 to 104.5 price talk.

The pricing renders a yield to worst of 8.107%.

Credit Suisse Securities ran the books for the quick-to-market issue, which was upsized from $100 million.

The Knoxville, Tenn.-based motion picture exhibition company will use the proceeds to repay a portion of its term loan.

Issuer:	Regal Entertainment Group
Face amount:	$150 million, increased from $100 million
Proceeds:	$156.75 million
Maturity:	Aug. 15, 2018
Security description:	Add-on to 9 1/8% senior notes
Bookrunner:	Credit Suisse Securities
Coupon:	9 1/8%
Price:	104.5
Yield:	8.107%
Spread:	531 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Aug. 15, 2014, then callable at 104.563, 102.281, par on and after Aug. 15, 2016
Equity clawback:	35% at 109.125 until Aug. 15, 2013
Trade date:	Jan. 4
Settlement date:	Jan. 7 with accrued interest
Ratings:	Moody's: B3
	Standard & Poor's: existing B
Distribution:	SEC registered
Price talk:	104 to 104.5
Marketing:	Quick to market
Original issue:	$275 million priced at par on Aug. 10, 2010
Total issue size:	$425 million

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