Hoyts trims pricing on first-, second-lien covenant-light term loans

By Sara Rosenberg

New York, May 20 - Hoyts reduced pricing on its $310 million seven-year covenant-light first-lien term loan (B1/BB-) to Libor plus 300 basis points from Libor plus 350 bps and on its $100 million 71/2-year covenant-light second-lien term loan (B3/B-) to Libor plus 725 bps from Libor plus 750 bps, according to a market source.

As before, both term loans have a 1% Libor floor, the first-lien term loan has an original issue discount of 99½ and 101 repricing protection for six months, and the second-lien term loan has a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three.

In addition to the term loans, the company is getting a A$40 million five-year revolver.

The credit agreement includes a provision that allows for a change-of-control within 30 months, the source added.

Credit Suisse Securities (USA) LLC and UBS Investment Bank are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Commitments are due at 5 p.m. ET on Tuesday, accelerated from Wednesday.

Hoyts is a cinema exhibitor in Australia.

© 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.