Deutsche Bank launched a $75 million increase to Kerasotes Showplace Theatres' existing $100 million term loan last Wednesday. The company is also looking to cut 25 basis points off the term loan to level off at LIBOR plus 2 1/4%. The add-on will be used to fund the acquisition of 13 additional theaters and 153 screens.
Moody's Investors Service affirmed the B2 corporate family rating and assigned a B1 to the term loan. Debt to EBITDA leverage will rise to about six times from 5.5 times pro forma the transaction. Chicago-based Kerasotes operates motion picture theaters in the Midwest. Calls to James Debruzzi, cfo, were not returned.