National CineMedia completed a credit agreement that included a $270 million term loan and a $175 revolving credit facility with JPMorgan as administrative agent
According to a related 8-K filing, the term loan has the following terms:
- The aggregate principal is $270 million, consistent with the aggregate principal amount of term loans outstanding under the existing credit agreement
- Proceeds were used to repay in full all amounts outstanding under the existing credit agreement
- Interest rate is LIBOR + 3.00%
- A financial covenant was added requiring a total leverage ratio of 6.25:1:0
- The general investment basket was increased to $100 million, compared to $25 million under the existing credit agreement
- Will mature on June 20, 2025, contingent upon the refinancing on or prior to October 30, 2021 of NCM 6.00% senior secured notes due in 2022 and issued pursuant to the indenture
The revolving credit facility has the following terms:
- Aggregate availability under the $175 million is consistent with the existing credit agreement revolving credit facility
- Interest rate remains unchanged from the existing credit agreement at LIBOR plus an amount ranging from 1.75-2.25% based on NCM’s senior secured leverage ratio
- Financial covenant regarding the senior secured leverage ratio decreased to 4.50:1:00, compared to 6.50:1:00 under the existing credit agreement
- Will mature on June 20, 2023, contingent upon the refinancing of the senior secured notes on or prior to October 30, 2021. If the senior secured notes are not refinanced by that date, then the revolving credit facility will mature on December 30, 2021