Marquee plans $400 million holdco term loan

By Sara Rosenberg

New York, June 5 - Marquee Holdings Inc. plans to form a new holding company to get a $400 million five-year senior unsecured term loan, according to a news release.

JPMorgan is the lead arranger and bookrunner on the deal.

Proceeds will be used to pay a dividend to stockholders.

Marquee also announced a consent solicitation for an amendment to the indenture governing its 12% senior discount notes due 2014 that would revise the restricted payments covenant to permit $275 million in restricted payments prior to making an election to pay cash interest on the notes.

If the amendment is approved, the company will use cash on hand to pay an additional $275 million dividend to stockholders.

Marquee also has the option to fund this $275 million dividend by electing for holdco to enter into an additional $275 million 364-day senior unsecured term loan.

The consent solicitation expires on June 8.

Marquee is a Kansas City, Mo., theatrical exhibition company.

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