A $15 million chunk of Regal Cinemas' bank debt traded at 90 in an auction early last week as the market began to rumble about the pending Writers' Guild of America strike. But most traders discounted the labor conflict. "You could argue that movie companies are under pressure, but our analyst says there are a good deal of movies in the pipeline, so it should have no effect," a trader said. "The strike would have to go on for a long time for that to happen." Another dealer said the levels should be pushed down due to concern over the strike. "I would think it would depress levels," he said.
Regal is a theater chain based in Knoxville, Tenn. Levels are up from 71 in early January (LMW, 1/21), when investor Philip Anschutz's interest in the bank debt propelled levels. Bank of Nova Scotia, J.P. Morgan Chase, and Bank of America are the lead arrangers, according to Capital DATA Loanware. Regal has a $1.2 billion loan that is priced at 2 1/2% over LIBOR.