Cinemark cuts upfront fee on term B maturity extension to 25 bps

By Sara Rosenberg

New York, May 4 – Cinemark USA Inc. reduced the upfront fee on its proposed extended roughly $684.3 million term loan B to 25 basis points from 50 bps, according to a market source.

As before, the company is looking to extend the term loan to a seven-year maturity from the current Dec. 18, 2019 maturity, and the extended loan will have 101 soft call protection for six months.

Pricing on the term loan B will remain at Libor plus 300 bps with no Libor floor.

Still included in the term loan B is a springing net senior secured leverage covenant if any revolving loans are outstanding at 4.25 times and amortization of 1% per annum.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Barclays, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the bookrunners on the deal.

Cinemark is a Plano, Texas-based motion picture exhibitor.

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