Loews Cineplex to get new credit facility via CSFB and Citigroup

By Sara Rosenberg

New York, June 23 - Loews Cineplex Entertainment Corp. is expected to come to market with a new credit facility to help fund the acquisition of Loews by a corporation formed by Bain Capital, The Carlyle Group and Spectrum Equity Investors for C$2 billion from Onex Corp. and Oaktree Capital Management LLC. Credit Suisse First Boston will be leading the deal with Citigroup, according to informed sources.

No details on the financing are available at this time, sources added.

Under the acquisition agreement, Onex and Oaktree will retain the Loews interest in Cineplex Galaxy, which operates the Loews theater business in Canada as well as Galaxy Entertainment.

The assets being acquired include Loews' operations in the United States, Grupo Cinemex, and its 50% interests in Megabox Cineplex of Korea and Yelmo Cineplex of Spain, according to a company news release announcing the deal.

It is expected that the sale, which is subject to customary regulatory approvals, will close during the third quarter.

Credit Suisse First Boston LLC and Citigroup Global Markets acted as financial advisers to Loews Cineplex in connection with this transaction.

Loews is a New York-based movie theater chain.

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