National CineMedia LLC, a cinema advertising company, entered into a new $50 million revolving credit facility, with the entire amount drawn on Jan. 5. According to an 8K filed with the SEC, WSFS Bank is the administrative agent for the facility.
The loans incurred under the new revolving credit facility accrue interest payable in cash at the rate of term SOFR plus 8% per annum (subject to a 1% floor) and mature on June 20, 2023.
In connection with the new revolving credit facility, National CineMedia LLC also entered into an amendment to its existing credit agreement to extend the suspension of its consolidated net senior secured leverage ratio and consolidated net total leverage ratio financial covenants established by credit agreement amendments entered into on April 30, 2020, and March 8, 2021, until and including the fiscal quarter ending on or about Dec. 29, 2022, and to revise the applicable financial covenant ratios for the fiscal quarters beginning March 30, 2023, through and including the quarter ending on or about Sept. 28, 2023.
The credit agreement amendment also extends the limitations established by previous credit agreement amendments through Dec. 28, 2023, regarding National CineMedia LLC’s ability, among other things, to make distributions with available cash to National CineMedia Inc.
According to the 8K, JPMorgan Chase Bank is the administrative agent for the existing credit agreement.
Including the net proceeds from the new revolving credit facility after fees, National CineMedia Inc. has a cash balance of $143.1 million ($99.7 million at National CineMedia LLC).
National CineMedia Inc. owns 48.3% of and is the managing member of National CineMedia LLC.