Vue issues call for £300 million 7 7/8% notes, €360 million floaters

By Susanna Moon

Chicago, Nov. 21 – Vue International Bidco plc issued a contingent call for its £300 million of 7 7/8% senior secured notes due 2020, €290 million senior secured floating-rate notes due 2020 and €70 million senior secured floating-rate notes due 2020.

The redemption, set for Dec. 21, is conditioned on financing, according to a company notice.

All the notes will be redeemed at par.

Vue International launched £833 million equivalent of term loans due December 2025 through Vue International Bidco plc.

The financing consists of a €480 million senior secured term loan B, a £300 million senior secured term loan B and €114 million delayed-draw tranche senior secured term loan B.

The financing follows the CineStar acquisition and will refinance Vue's capital structure “with the objective of increasing maturities, reducing cost of debt and increasing flexibility in addition to raising proceeds for the CineStar acquisition,” according to a company announcement.

The company’s existing £60 million equivalent super senior revolving credit facility will also be refinanced on a senior secured basis and upsized as part of the financing, the release noted.

Proceeds will be used to help refinance Vue's €120 million senior secured term loan B.

The company also will use proceeds to finance the majority of the initial purchase price of the CineStar acquisition for €130 million and to fund CineStar new site capital expenditures.

The transaction will be leverage neutral to Vue's last reported quarter ended August.

Vue is an entertainment services provider based in London.

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