Carmike Cinemas to repay term debt with common stock offering

By Sara Rosenberg

New York, Nov. 19 - Carmike Cinemas Inc. plans to repay outstanding debt under its term loan with the entire net proceeds from a common stock offering, according to a filing with the Securities and Exchange Commission.

Based on an assumed public offering price of $35.50 per share, it is estimated that the company will receive net proceeds of $99.1 million after deducting underwriting discounts and estimated offering expenses.

In addition to the stock offering, the company is looking to sell about $250 million of notes to refinance its existing senior subordinated notes and term loan, depending on the ability to secure more favorable terms, the filing said. However, the equity offering is not conditioned upon the successful completion of a bond offering.

As of Sept. 30, the company had $182.3 million outstanding under its term loan with an effective interest rate of 7.75% per annum and no outstanding amounts under its $50 million revolver.

Carmike is a Columbus, Ga., motion picture exhibitor.

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