January 17, 2018 / 11:00 AM / 7 months ago

LPC-Banks to sell US$4.3bn-equiv loan for Cineworld’s Regal buy

LONDON, Jan 17 (Reuters) - A US$4.3bn-equivalent leveraged loan financing backing Britain’s Cineworld Group’s acquisition of US peer Regal Entertainment Group has launched for syndication, banking sources said.

Cineworld Group agreed a US$3.6bn cash acquisition of US peer Regal Entertainment Group in December 2017 to create the world’s second largest movie theatre operator.

Barclays and HSBC are leading the loan financing that comprises a US$4.007bn, seven-year covenant-lite term loan, which will include an around US$1bn carve-out denominated in euros and sterling.

Pricing on the dollars is guided at 275bp over Libor, while the euros are guided at 300bp over Euribor and the sterling at 350bp over Libor. All are offered with a 0% floor and 101 soft-call for six months, the sources said.

An OID is expected to emerge at bank meetings in London and New York on January 18 and January 22, respectively. Lenders have been asked to commit to the financing by February 5.

The financing also includes a US$300m, five-year revolving credit facility.

The term loan will part-finance the acquisition, pay acquisition fees and expenses, and refinance Cineworld and Regal’s existing debt. The revolving credit will be used for working capital, capital expenditures and general corporate purposes. (Editing by Alasdair Reilly)

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