Carmike Cinemas received an amendment to its credit agreement, relaxing the interest covenant from 2 times to 1 3/4 times through next year. Carmike's financials were restated, resulting in some operating leases being changed to capital leases. "This tightened up their financials under the covenant - so they are relaxing the interest covenant for the next few months," a banker said.
Bear Stearns leads the $405 million senior secured credit facility, which came to market in May 2005, according to a filing with the Securities and Exchange Commission. The company entered into another amendment back in July to extend the deadline for submitting financial statements for 2005, and the first two quarters of 2006, to Sept. 30, according to a company release.
The current deal consists of a five-year, $50 million revolver; a seven-year, $170 million term loan and a seven-year, $185 million delayed-draw term loan. Pricing on the credit was LIBOR plus 2 1/4% for the revolver and LIBOR plus 2 1/2% for the term loans at launch.
Columbus, Ga.-based Carmike Cinemas has 301 theaters in 37 states, as of Sept. 30, 2005. Calls to a company spokesman were not returned.