Moody's rates Regal loan Ba1

Moody's Investors Service said it assigned Ba1 (LGD2) ratings to the proposed $85 million senior secured revolving credit facility and $966 million senior secured term loan of Regal Cinemas Corp., a wholly owned subsidiary of Regal Entertainment Group. The B1 corporate family rating and stable outlook are unchanged.

Proceeds will be used to refinance the existing credit facility.

The transaction favorably extends maturities, the agency said. It will slightly increase annual interest expense (estimated at an about $5 million increase), but the replacement of high-coupon bonds with 5% bonds in early 2014 saved Regal more than this increase, according to Moody’s.

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