The end of a looming writers' strike and a blockbuster movie have colored a better picture for theater credits. Loews Cineplex's bank debt is now offered at 88, and bids are in the 85 range, according to dealers. In recent weeks market players were anxious about the pending Writers' Guild of America strike and what it might mean to film credits. But with the resolution of the conflict, dealers say the levels should move up. Traders said another factor has been the success of "The Mummy Returns," which has grossed more than $80 million since its release. Loews' bank debt was last quoted at 79-84 (LMW, 2/4).
Loews has a $1 billion deal that breaks down into two tranches and expires in 2003. Pricing is 1 5/8 % over LIBOR, according to Capital DATA Loanware. Deutsche Bank, Credit Suisse First Boston, Bank of America, and Bank of New York.