Regal Entertainment Group announced that it has priced its previously announced senior notes offering.
In a release on February 25, the Company noted that a total of $775 million aggregate principal amount of senior notes, which will bear interest at a rate of 53/4 percent per year, will be issued. The notes will pay interest semiannually in arrears on March 15 and September 15 of each year, beginning September 15, and will mature on March 15, 2022. The Company anticipates that the offering will close on or around March 11, subject to customary closing conditions.
Regal intends to use the net proceeds from the offering to fund cash tender offers for any and all of its 91/8 percent senior notes due 2018 and any and all of the 85/8 percent senior notes due 2019 of Regal Cinemas Corp., a Delaware corporation and subsidiary of the Company. In the event the tender offers are terminated or there are remaining proceeds after funding the tender offers, Regal intends to use the proceeds for general corporate purposes and for the repayment or selective purchase of outstanding debt of the Company or its subsidiaries. Such repayment or purchases may be made in open market or privately negotiated transactions, through one or more additional tender or exchange offers, pursuant to redemption terms applicable to Regal's or its subsidiaries' debt, or otherwise.
Credit Suisse Securities (USA), Barclays Capital Inc., BofA Merrill Lynch, Deutsche Bank Securities Inc. and Wells Fargo Securities, are acting as joint book-running managers for the offering. The notes are being offered pursuant to the Company's effective shelf registration statement (File No. 333-182383) on file with the Securities and Exchange Commission ("SEC"). The offering of notes will be made only by means of a prospectus supplement and related base prospectus. A preliminary prospectus supplement relating to the offering has been filed with the SEC. A copy of the preliminary prospectus supplement and related base prospectus can be obtained by either contacting Credit Suisse Securities (USA) toll- free at 1-800-221-1037 or by accessing the SEC's website.
Regal Entertainment Group operates a theatre circuit in the United States.
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