Carmike Cinemas to refinance senior secured debt facilities


MUMBAI: Carmike Cinemas, Inc. is pursuing a refinancing of its senior secured term loan facility that matures in May 2012. The existing term loan facility had a balance of $250.8 million outstanding on 31December, 2009. The term loan facility is being launched with an interest rate of LIBOR plus 400 basis points, with a LIBOR floor of 2.0%. The potential refinancing is being led by J.P. Morgan Securities Inc., Citigroup Global Markets and Macquarie Capital (USA) as joint lead arrangers and joint bookrunners.

Carmike also announced plans to replace its $50 million revolving credit facility maturing in May 2010 with a new, $30 million revolving credit facility expected to bear interest at a rate of LIBOR plus 400 basis points, with a LIBOR floor of 2.0%, and to mature in January 2013. The existing revolving credit facility was undrawn as of 31 December, 2009. Expected participants in the new revolving credit facility include JPMorgan Chase Bank, N.A., Citibank, N.A., and Macquarie Capital.

Consummation of the refinancing is expected by late January/early February but is subject to market and other conditions. Carmike will file a copy of the new credit agreement with the Securities and Exchange Commission upon completion of the new term loan and revolving credit facilities.

Carmike Cinemas CFO Richard B. Hare said, "With the nearing expiration of our revolving line of credit and the potential for rising interest rates over the next two years, it made sense to address the revolver and term loan at this time. We believe the refinancing would provide Carmike with flexibility to fund our long-term growth and success."