Carmike amends facility, changing consolidated leverage ratios, interest coverage ratios

By Jennifer Chiou

New York, Oct. 2 - Carmike Cinemas, Inc. said it amended its senior secured credit facility to modify consolidated leverage ratios and consolidated interest coverage ratios.

Under the amendment, Carmike's consolidated leverage ratio on the last day of any of four consecutive fiscal quarters may not exceed 4.35:1.00 for any period ended Dec. 31, 2005 through March 31, 2006; 5.00 to 1.00 for the period ended June 30; 4.75 to 1.00 for any period ending Sept. 30 through Dec. 31, 2007; and 4.50 to 1.00 for any period ending March 31, 2008 or thereafter.

In addition, the Columbus, Ga.-based motion picture exhibitor's consolidated interest coverage ratio for any period of four consecutive fiscal quarters may not be less than 2.00 to 1.00 for the period ending prior to Sept. 30; 1.75 to 1.00 for any period ending during Sept. 30 to Dec. 31, 2007; and 2.00 to 1.00 after that.

The amendment also limits aggregate capital expenditures to $30 million for any consecutive 12-month period ending during Sept. 30 to Dec. 31, 2007.

Also, the company amended the calculation of its consolidated EBITDA for purposes of the consolidated leverage ratio and the interest coverage ratio, allowing it to exclude from the calculation up to $7.7 million of legal, accounting and consulting expenses and transaction fees incurred between Dec. 31, 2005 and Dec. 31 related to Carmike's prior accounting restatements and credit facility amendments.

Carmike may also exclude from the calculation of consolidated EBITDA up to $2.3 million of other unusual and nonrecurring expenses incurred before March 31, 2007 related to the accounting restatements.

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