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S&P: Carmike unaffected
Standard & Poor's said Carmike Cinemas Inc.'s announcement that it has signed a definitive agreement to acquire 16 theaters with 251 screens from Rave Reviews Cinemas will not affect the B corporate credit rating or stable outlook on the company.
According to S&P, Carmike is paying roughly 5x EBITDA, including $19 million in cash and about $100 million of assumed lease obligations.
The agency said it believes Carmike has enough cash to finance the transaction and that lease-adjusted leverage will remain roughly the same, in the high-4x area, after adding assumed lease obligations from the acquisition.
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