The bid-offer spreads on the bank debt of Loews Cineplex and Regal Cinemas have been moving up to 79-84 and the low to mid-70s, respectively, as box office winners help out the industry, dealers said. "There's just better movies out now," said a dealer. "Movies are the product, so if good movies come out they make more money. Investors are also happier with their product and are feeling more secure." Another dealer said billionaire investor Philip Anschutz's interest in Regal's bank debt and move to take control of United Artists Theater Circuit is helping the levels. "It's driven a frenzy in the market, and certainly moved things up," he said, adding that he's doubtful levels will propel much further. "There's a lot of rumors floating around about Regal," said a dealer, declining to name specifics. "There are a lot of rumors of consolidation in all the theater names."
Loews has a $1 billion facility which breaks down into two tranches. It matures in 2003 and is priced at LIBOR plus 1 5/8 % Regal has a facility for over $1 billion which breaks down into four tranches. It is priced at LIBOR plus 2 1/2 %.