Prior to publication, this document contained inside information under Regulation (EU) 596/2014 on market abuse.
Vue International launches £813m equivalent refinancing and acquisition financing
London, June 3 2019– Vue International (“Vue”), one of the world’s leading cinema operators, today announced the launch of a £813m equivalent financing (the “Financing”), through Vue International Bidco plc (the “Borrower”).
The Financing will fully refinance Vue’s capital structure, with the objective of increasing maturities, reducing cost of debt and increasing flexibility.
The new financing package of term loans will be comprised of:
- c.£550m-equivalent EUR Senior Secured Term Loan B
- €114m (c. £98m) EUR Senior Secured Term Loan B (delayed draw tranche)
- £165m 2nd Lien PIK Notes provided by OMERS, a current Vue shareholder
The existing £60m equivalent Super Senior Revolving Credit Facility will also be refinanced on a senior secured basis and upsized to £65m as part of the Financing.
The proceeds of the transaction will in part be used to refinance Vue’s existing indebtedness including its €120m EUR Senior Secured Term Loan B, €360m EUR Senior Secured Floating Rate Notes, and £300m GBP Senior Secured Notes in their entirety (the “Refinancing”). In addition, the proceeds of the transaction will be used to refinance the €114m delayed draw tranche which finances the majority of the initial purchase consideration of the announced CineStar acquisition (€130m), fund CineStar new site capital expenditures and pay associated fees and expenses. The Refinancing will be leverage neutral.
Concurrent to the launch of the Financing, Vue is also issuing a conditional redemption notice on its existing notes.
J.P. Morgan, Morgan Stanley and Lloyds Bank are acting as Joint Global Coordinators, Mandated Lead Arrangers and Bookrunners on the Financing.
Important Regulatory Notice
This press release is for informational purposes only and does not constitute a prospectus or an offer to sell or issue or the solicitation of an offer to buy or subscribe for any securities in the United States or any other jurisdiction.
This press release may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of the company about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections.
Brunswick Group LLP
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