Carmike Cinemas was able to get a spread of LIBOR plus 31/4% on its five-year, $100 million second-lien loan. "The deal was a blowout," a banker said. Allocations were skimpy due to the strong demand, he added. The Goldman Sachs-led refinancing includes a four-year, $50 million first-lien revolver, also priced at LIBOR plus 31/4%. "The company is ecstatic," the banker said. "They were previously paying LIBOR plus 73/4%." Bank of New York led the previous term loan and GE Capital led the revolver, but these facilities financed the company's exit from bankruptcy in 2002.
Alongside the new credit facility, Carmike completed an approximately $90 million equity offering and a $143.9 million private offering of 71/2% senior subordinated notes. Carmike is using the stock offering, the new senior sub notes and the new term loan to repay the existing senior debt and its 103/8% senior subordinated notes due 2009. Goldman acted as the sole book running manager on both the common stock and notes offerings.
Martin Durant, Carmike's cfo, and a Carmike spokeswoman did not return calls. Goldman officials declined comment. Bank of New York and GE Capital bankers could not be reached by press time.