Cinemark USA looks to add new term loan to credit facility

By Carlise Newman

Chicago, Aug. 1 - Cinemark USA Inc. is requesting amendments to its $200 million senior secured credit facility from its lenders to provide a $165 million term loan due March 31, 2008.

Proceeds from the term loan and additional borrowings under the revolving facility will be used to repay $125 million of term loans under the company's senior secured credit facility and redeem the company's $42 million 9 5/8% senior subordinated notes due 2008.

The amendments require consent of the lenders and the prepayment of $125 million under the existing term loan. The company intends to issue a redemption notice for the $42 million of notes.

The existing loan is a $125 million six-year term loan B at Libor plus 300 basis points.

Lehman Brothers is the lead bank on the Plano, Tex. movie operator's existing loan.

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