Cineplex to price $550 million five-year senior secured notes

By Abigail W. Adams

Portland, Me., Feb. 14 – Cineplex Inc. is in the market with a $550 million offering of five-year senior secured notes (BB-/BB), according to market sources.

The notes are non-callable for two years.

An investor call is scheduled for 11 a.m. ET on Wednesday with pricing expected later in February.

BMO Capital Markets Corp., Scotia Capital (USA) Inc., RBC Capital Markets LLC and TD Securities (USA) LLC are bookrunners for the Rule 144A offering, which will also be distributed to qualified investors in Canada.

The notes carry a poison put of 101 and an equity clawback of 40%.

Net proceeds are expected to be $536 million.

Proceeds will be used to repay the company’s existing senior credit facility, to repay the existing senior notes, to redeem $100 million in outstanding convertible note debentures and for general corporate purposes.

Cineplex is a Toronto-based movie theater operator.

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