Moody's ups Regal debt, rates notes B3

Moody's Investors Service said it assigned a B3 rating to the proposed senior unsecured notes of Regal Entertainment Group and affirmed its B1 corporate family rating.

The company expects to use proceeds to repay debt, including a tender for Regal's 9 1/8% senior unsecured bonds due August 2018 and the 8 5/8% senior unsecured bonds due 2019 of its operating subsidiary Regal Cinemas Corp.

Moody's also upgraded the first-lien bank debt of Regal Cinemas Corp. to Ba1 from Ba2.

The upgrade of the first-lien bank debt to Ba1 from Ba2 incorporates a gradual mix shift in Regal's liability structure, the agency said.

First-lien bank debt now comprises a relatively smaller portion of the total liabilities as the company has paid down bank debt, increased unsecured bonds to fund acquisitions and added incremental lease liabilities with the acquisitions.

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