Regal Entertainment Group's $315 million term loan "D" was heavily oversubscribed, only days after launching into syndication last Tuesday. One buysider said the deal had $900 million in commitments by the end of last week and that pricing had been flexed downwards 25 basis points to LIBOR plus 21/2%. The deal is part of a recapitalization that will provide investors in its 2002 reorganization a special dividend of between $600-625 million without selling stock. Colorado billionaire Philip Anschutz owns about 77% percent of Regal's voting stock. Knoxville, Tennessee-based Regal also indicated it is selling $200 million in convertible notes and could sell up to $40 million more after heavy demand.
One investor said any griping or concerns over the dividend are mitigated by the fact the company is pledging more collateral to the bank debt. Also, the company delivered on it pledges so there is some room for the dividend, he added. Mostly, though, it is technicals, he said. The hot high-yield bond market is leaving CLO accounts long on cash, a banker said, and they are desperate for paper. Regal officials did not return calls.