BofA Increases Reading International Revolver
Reading International signed a new $55 million revolving credit facility with Bank of America.
The facility refinances its existing $35 million ($29.8 outstanding) term loan with Bank of America. The new facility includes a $5 million sublimit for the issuance of standby letters of credit and a $1 million sublimit for swing-line loans. The facility has a five-year term, at which time all amounts outstanding are due and payable.
Interest is based on LIBOR plus a variable margin of between 3.0% and 2.5%. Any unused portion of the facility carries an annual commitment fee of between 0.3% and 0.2%. Financial covenants are in line with usual and customary covenants for business loans of this nature.
The facility is with Reading International’s wholly owned subsidiary Consolidated Amusements Holdings (CAHLLC) and allows for the use of up to $27 million of the facility to finance the company’s other domestic activities. CAHLLC holds the majority of Reading International’s domestic leased cinemas, and it has pledged these in support of this facility.
Reading International is in the business of owning and operating cinemas and developing, owning and operating real estate assets.