Cinemark firms spread on $700 million term loan, tightens discount

By Sara Rosenberg

New York, Dec. 12 - Cinemark Holdings Inc. set pricing on its $700 million term loan at Libor plus 300 basis points, the tight end of the Libor plus 300 bps to 325 bps talk, and revised the original issue discount to 99½ from 99, according to a market source.

As before, the loan has no Libor floor and 101 soft call protection for one year.

The company's $800 million senior secured credit facility (Ba1/BB+) also includes a $100 million undrawn revolver.

Recommitments were due at the end of the day on Wednesday, the source added.

Barclays, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds, along with $400 million of senior notes, will be used to refinance an existing $73.5 million revolver and $900 million term loan.

With this transaction, the company is raising about $200 million of incremental debt.

Last month, the company announced plans to acquire 32 theatres located in 12 states from Rave Cinemas for about $240 million.

Cinemark is a Plano, Texas-based motion picture exhibitor.

© 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.