Regal reduces term loans' interest rate, nixes interest coverage test

By Angela McDaniels

Tacoma, Wash., April 25 - Regal Entertainment Group subsidiary Regal Cinemas Corp. amended its senior secured credit agreement on April 19, reducing the interest rate on the $1,006,000,000 of term loans by 50 basis points, according to an 8-K filing with the Securities and Exchange Commission.

Following the amendment, the interest rate is Libor plus either 250 bps or 275 bps depending on the consolidated leverage ratio of Regal Cinemas and its subsidiaries.

In addition to the term loans, the credit agreement provides for an $85 million revolving credit facility.

Among other things, the amendment also

• Deletes the interest coverage ratio test, and the remaining financial covenants will only be tested if the outstanding amount of the revolving loans and letters of credit (including unreimbursed drawings) under the revolver equals or exceeds 25% of the revolver commitment;

• Provides for a 1% prepayment premium if Regal Cinemas refinances or amends the term loans within one year of the amendment date that, in either case, has the effect of reducing the interest rate;

• Permits the release of Regal Entertainment Group from its guarantee of the credit agreement in the event that it does not guarantee any other debt of Regal Cinemas or its subsidiaries; and

• Eliminates the mortgage requirement for fee-owned real properties that are acquired by Regal Cinemas or its subsidiaries after the amendment date.

Credit Suisse AG, Cayman Islands Branch is the administrative agent.

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

© 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.