Cineworld finalizes $1.93 billion term loan at Libor plus 300 bps

By Sara Rosenberg

New York, Feb. 7 – Cineworld Group plc firmed pricing on its $1.932 billion senior secured incremental term loan (B1/B+/BB-) at Libor plus 300 basis points, the high end of the Libor plus 275 bps to 300 bps talk, according to a market source.

Also, the original issue discount on the term loan was revised to 99 from 99.5, the source said.

The term loan has 101 soft call protection for six months and 50 bps MFN for life.

BofA Securities Inc., HSBC Securities (USA) Inc. and Goldman Sachs Bank USA are the leads on the deal.

Proceeds will be used to help fund the acquisition of Cineplex Inc. for C$34.00 in cash per common share, valuing the fully diluted equity of Cineplex at C$2.18 billion. The acquisition price implies an enterprise value of C$2.8 billion.

Closing is expected by the end of the first half of 2020, subject to Cineworld and Cineplex shareholder approvals and various regulatory approvals.

Cineworld is a London-based cinema operator. Cineplex is a Toronto-based motion picture exhibitor.

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