S&P affirms Wallace Theater

Standard & Poor's said it affirmed Wallace Theater Holdings Inc.'s corporate credit rating of CCC following its proposed sale of nearly all of its theaters to Regal Entertainment Group.

The outlook is negative.

If the transaction is completed, Wallace will receive $191 million, which the company intends to use to repay all of its debt outstanding, including its $157 million senior notes and any balance outstanding on its $10 million revolving credit facility.

If the company completes the transaction and Wallace uses the proceeds to repay the balance of the outstanding notes, S&P said it will withdraw the corporate credit rating and the ratings on the notes.

If Wallace doesn't complete the transaction, the agency said it could lower its ratings, reflecting the significant refinancing risk related to the maturity of its bonds in June 2013.

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