Regal Cinemas Inc., a movie-theater operator, lowered the rate it’s proposing to pay on a $988 million loan, according to a person with knowledge of the transaction.
The first-lien debt, which comes due in August 2017, will pay interest at 2.75 percentage points more than the London interbank offered rate when leverage is more than 3 times, said the person who asked not to be identified because the deal is private. The unit of Regal Entertainment Group (RGC) initially proposed to pay interest at 3 percentage points when leverage is more than 3 times.
When leverage, or debt to earnings before interest, taxes, depreciation and amortization, is less than 3 times, Regal will pay interest at 2.5 percentage points more than Libor, down from 2.75 percentage points initially proposed.
Credit Suisse Group AG is arranging the so-called covenant- light financing for the unit of Regal Entertainment Group, which will be sold to lenders at par, the person said.
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