A $30 million piece of Regal Cinemas' pro rata traded at 71 last week, with optimism still hinged on news that investor Philip Anschutz and Los Angeles-based Oaktree Capital Management had purchased a large chunk of the bank debt. "When it was announced it clearly helped prop the paper up. You've got smart people interested in it," said one. Another market watcher had a different take on the trade, noting a slight dip compared to recent levels. "I don't think the seller checked many places," he remarked. The identity of the buyer and seller could not be confirmed by press time last week. Amy Miles, cfo of Regal, did not return calls for comment.
Regal's levels are up from late last year the low 60s--as traders commented about the saturation of cinema chains and struggling earnings. At the time, Regal had been seeking a restructuring of its $1.2 billion loan, and dealers speculated about a possible Chapter 11 bankruptcy filing (LMW, 12/11). Regal's credit facility breaks down into four tranches. Pricing is 21Ž 2% over LIBOR. Bank of Nova Scotia, J.P. Morgan Chase and Bank of America are the lead arrangers, according to Capital DATA Loanware. A spokeswoman at Morgan Chase declined to comment. Spokesmen at the other two banks did not return calls.