Cinemark to take out $250 million credit facility alongside IPO

New York, May 17 - Cinemark, Inc. is to take out a new $250 million credit facility alongside its initial public offering of common stock.

The Plano, Texas movie theater operator said in a filing with the Securities and Exchange Commission that the arranger for the new bank loan will be Lehman Brothers, which is also the bookrunner for its IPO.

Cinemark said the new facility will include both a revolver and term loans.

Proceeds from the facility will be used to repay any borrowings under its existing credit facilities that are not repaid with the IPO proceeds.

Cinemark's IPO is for $200 million of class A common stock; a registration statement was filed with the SEC on Friday.

Currently Cinemark has:

--A $350 million reducing revolving credit facility due Feb. 12, 2006 for Cinemark USA, Inc. with an effective interest rate as of March 31 of 3.7%. Bank of America NA is administrative agent. The current commitment available is $301.9 million and as of March 31 the company had borrowed $263 million;

--A $29.0 million facility for Cinemark Mexico (USA) which matures January 2003 and had an effective interest rate as of March 31 of 4.9%. Bank of America NT and SA is the lender; and

--A $77.0 million term loan for Cinema Properties, Inc. from Lehman Brothers Bank, FSB maturing Dec. 31, 2003. The interest rate is Libor plus 575 basis points with an effective interest rate as of March 31 of 7.7%. The company also has a $77 million interest rate cap with a strike price of 6.58%;

Cinemark, which operates 3,014 screens, 2,215 in North America and 799 elsewhere, primarily Latin America, also has $275 million in 9 5/8% senior subordinated notes due 2008 and $105 million in 8½% senior subordinated notes due 2008 outstanding.

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