By Angela McDaniels
Tacoma, Wash., June 28 - Marcus Corp. agreed to sell $50 million of 4.02% senior notes due 2025 to a group of purchasers in a private placement, according to an 8-K filing with the Securities and Exchange Commission.
The company must make annual prepayments of $10 million each in 2021, 2022, 2023 and 2024.
The notes have a make-whole call option at Treasuries plus 50 basis points.
The placement is expected to settle Aug. 14.
The company plans to use the proceeds to reduce existing borrowings under its revolving credit facility and for general corporate purposes.
The note purchase agreement limits the amount of priority debt held by the company or by its restricted subsidiaries to 20% of the company's consolidated total capitalization, limits its permissible consolidated debt to 65% of its consolidated total capitalization and requires it to maintain a minimum consolidated operating cash flow to fixed charges ratio of 2.5 to 1.0.
Marcus is a Milwaukee-based owner of movie theaters and hotels.
| Issuer: | Marcus Corp.
|
| Issue: | Senior notes
|
| Amount: | $50 million
|
| Maturity: | Aug. 14, 2025
|
| Amortization: | $10 million on Aug. 14, 2021, Aug. 14, 2022, Aug. 14, 2023 and Aug. 14, 2024
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Pricing date: | June 27
|
| Settlement date: | Aug. 14
|
| Distribution: | Private placement
|
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