Regal Cineworld Group has secured a new $1.9 billion in Term Loan B facility.
The new facility is priced at SOFR + 525 bps with a maturity date of Dec. 1, 2031, and replaces the Group’s existing Term Loan B.
The refinancing included a $350M Revolving Credit Facility that replaces the company’s existing revolving credit facility. The New Facility is priced at SOFR + 425 bps with a maturity date of Dec. 1, 2029.
With the rebound of the global box office, particularly over the Thanksgiving holiday with Moana 2, Wicked and Gladiator II, the theater chain per distribution sources is well positioned going forward. That troika alone saw 5M attendees at Regal over the Wednesday-Sunday stretch, breaking several records for the No. 2 circuit including the highest all-time Thanksgiving attendance, the highest Thanksgiving B.O., and highest concession revenue for the holiday.
“The overwhelmingly positive market reception for this transaction is a signal of the momentum we are seeing in our business,” said Eduardo Acuna, CEO at Regal Cineworld. “In Q3, Regal Cineworld welcomed over 49 million guests to our theatres and generated total revenue of over $1 Billion Dollars with record-high levels of spend per person on concessions. With the refinancing transaction, we will save $60 million per year in interest expense, which puts our successful restructuring squarely in the past.”
Q3 for Regal was driven by Inside Out 2, Deadpool & Wolverine, Despicable Me 4, Twisters, The Wild Robot, Alien: Romulus, It Ends With Us and Longlegs among many others that contributed to the quarter’s robust box office performance. That momentum continues in Q4, not just with the Thanksgiving holdovers, but the arrival of Sonic the Hedgehog 3 and Mufasa.
Barclays, Deutsche Bank, JP Morgan, Wells Fargo, Goldman Sachs and Texas Capital served as arrangers and bookrunners for the loan.