Thu 05/25/2023 13:46 PM
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Cinemark has priced a $650 million seven-year term loan due at SOFR+375 bps with a floor of 0.5% and an OID of 98.5, according to sources. The proceeds are earmarked to refinance the company’s lien term loan due March 2025.

Following investor pushback, a number of terms and provisions were incorporated into the amended credit agreement. In addition to including J. Crew, PetSmart and Serta protections, the amended credit agreement now requires the company to meet a pro forma 2x gross secured leverage test to the extent it wants to use the first lien incremental free and clear debt basket to refinance its outstanding senior unsecured notes.

The revisions also eliminated accrued capacity under the credit agreement’s builder basket based on EBITDA, less interest expense from Dec. 18, 2012, which would have provided the company with significant flexibility to pay dividends and transfer assets.

Barclays was left lead on the deal, with Wells Fargo and JPMorgan also serving as bookrunners.

--Adelene Lee, James Holloway, Gaurav Sharma
 
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