Cinemark Debt Slide Slow With Reprice
As the reprice on Cinemark's $1.12 billion term loan "B" came to a close last week so did the slow debt slide from around 101 1/4 to the 100 3/4-7/8 context.
As the reprice on Cinemark's $1.12 billion term loan "B" came to a close last week so did the slow debt slide from around 101 1/4 to the 100 3/4-7/8 context. The debt dropped about a 1/4 point when Lehman Brothers launched the reprice March 6 and it continued to fall to just below 101.
The repricing cut spreads to LIBOR plus 1 3/4% from LIBOR plus 2% with a step down to 1 1/2% when Moody's Investors Service and Standard & Poor's raise its corporate credit rating above Ba3/B+, according to a filing with the Securities and Exchange Commission. It currently has a B1 corporate family rating. Calls to a company spokesman were not returned.
The Plano, Texas theater operator originally tapped the market in September for the $1.27 billion credit to back its acquisition of Century Theatres and refinance existing debt (CIN, 9/11). Led by Lehman and Goldman Sachs, the deal comprises a $150 million revolver and the $1.12 billion term loan and was originally priced at LIBOR plus 2 1/4%. The term loan was flexed down 25 basis points due to oversubscription (9/29).