By Paul A. Harris
Portland, Ore., July 30 - National Amusements Inc. priced a 300 million issue of five-year senior secured notes (B1/BB/) at par to yield 5% on Tuesday, according to an informed source.
The yield printed at the tight end of the 5% to 5 1/8% yield talk.
Barclays and Wells Fargo Securities LLC were the joint bookrunners.
The notes become callable on Aug. 1, 2015 at 103.75. A special call provision allows the issuer to redeem up to 10% of the notes annually at 103 during the non-call period.
The notes are secured by a first-priority lien on 10,731,617 shares of CBS class A common stock and 7,831,654 shares of Viacom class A common stock owned by NAI Entertainment Holdings and by a second-priority lien on substantially all other assets.
The issuing entities are subsidiaries NAI Entertainment Holdings and NAI Entertainment Finance Corp.
The Norwood, Mass.-based movie theater chain operator plans to use the proceeds to refinance its 8¼% senior secured notes due 2017 and to pay down $50 million of revolver debt.
National Amusements operates theaters in the United States, the United Kingdom, Brazil and Argentina.
| Issuer: | NAI Entertainment Holdings and NAI Entertainment Holdings Finance Corp.
|
| Amount: | $300 million
|
| Description: | Senior secured notes
|
| Maturity: | Aug. 1, 2018
|
| Bookrunner: | Barclays, Wells Fargo Securities LLC
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 363 bps
|
| First call: | Aug. 1, 2015 at 103.75
|
| Special call: | Issuer to redeem up to 10% of the notes annually at 103 during the non-call period
|
| Trade date: | July 30
|
| Settlement date: | Aug. 6
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5% to 5 1/8%
|
| Marketing: | Quick to market
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
