Carmike amends loan, modifying pricing and covenants

By Sara Rosenberg

New York, Oct. 22 - Carmike Cinemas Inc. amended its credit facility, revising pricing and financial covenants, according to an 8-K filed with the Securities and Exchange Commission Monday.

Pricing for revolving and term loans can now range from Libor plus 300 basis points to 350 bps, depending on leverage.

As for covenants, the maximum consolidated leverage ratio was changed to 4.75 to 1.00, the minimum consolidated interest coverage ratio was changed to 1.65 to 1.00 and the limit on capital expenditures was changed to $30 million for any fiscal year, provided that up to $10 million of unused capital expenditures in a fiscal year may be carried into the next year.

In addition, the amendment permits sale-leaseback transactions of up to an aggregate of $175 million, provided that 85% of the net proceeds are used to prepay outstanding term loans and reduce revolving loan commitments.

The amendment was effective on Oct. 17.

Bear Stearns is the administrative agent on the deal.

The company is paying amendment fees in the aggregate amount of $367,352.

Carmike is a Columbus, Ga.-based motion picture exhibitor.

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