The $750 million term loan for National CineMedia broke last Tuesday around 100 5/8 before trading up to 101 1/8-3/4 and then leveling off around 100 7/8, according to a trader. Led by Lehman Brothers, pricing was cut from LIBOR plus 2 1/4% to LIBOR plus 1 3/4% before the break.
Lehman launched the deal Jan. 29 as an $80 million revolver and a $725 million term loan with initial price talk of 1 3/4% (CIN, 1/26). The company took out the new debt in conjunction with an initial public offering, and it is expected to be used to pay dividends to the theater operators Cinemark, Regal and AMC.