Market players are renewing their interest in Loews Cineplex Entertainment Corp., and speculate that the company will pursue an initial public offering and a new note issue. While the levels for the company's second lien loan are resting in the 98-99 context, the revisited recapitalization buzz has come with the perceived strength of the high-yield market and its reception to other entertainment companies, such as Regal Entertainment Group and AMC Entertainment. "[The bond market is] the first one in the water," commented one dealer, noting that if the bond market stays strong, bank deals will follow.
He explained that market players believe any new financing for Loews will come along with a complete balance sheet makeover, including a bank debt refinancing, because of the complicated structure of the bank debt post-bankruptcy. "If they can get the IPO, all of the bank debt goes away," he said. Calls to John Walker, Loews cfo and treasurer, were not returned by press time.