Carmike Cinemas gets term loan commitment in case bonds are accelerated

By Sara Rosenberg

New York, May 25 - Carmike Cinemas, Inc. has entered into a commitment letter for an unfunded term loan that would be used to purchase or repay its 7.5% senior subordinated notes due 2014 if the debt is accelerated, according to a company news release.

The bonds may be accelerated because the company has not filed or delivered its financial statements and related reports on time.

Bear Stearns has provided the loan commitment.

Use of the unfunded term loan is subject to an amendment of the company's existing senior secured credit facility permitting the transaction.

If the amendment does not go through, Bear Stearns said it will provide Carmike with replacement senior secured credit facilities, including an amount sufficient to purchase or repay the notes, the news release said.

The default cure period under the notes expires on June 3, after which the maturity of the notes may be immediately accelerated by the trustee or the holders of at least 25% in aggregate principal amount of the notes.

The commitment letter was entered into on May 24.

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

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