Regal, the second-largest movie theater chain in the United States, has successfully secured a $1.9 billion Term B loan as part of a refinancing strategy aimed at strengthening its financial position. The loan, which has a maturity date of December 2031, is accompanied by a $350 million revolving credit facility. The deal, led by major financial institutions including Barclays, Deutsche Bank, JP Morgan, Wells Fargo, Goldman Sachs, and Texas Capital, marks a significant step in Regal’s continued restructuring process.
This move comes after Regal’s parent company, Cineworld, filed for Chapter 11 bankruptcy in September 2022 and successfully emerged from restructuring last year. Regal’s CEO, Eduardo Acuna, emphasized the positive market response to the refinancing, highlighting that the company’s financial health is improving. He also noted that in the third quarter of this year, Regal attracted over 49 million guests to its theaters, generating over $1 billion in revenue, with record-breaking concession sales per person.
The refinancing deal will save Regal approximately $60 million annually in interest expenses, which Acuna stated marks the end of its restructuring phase. Regal’s focus on upgrading its 425 locations with luxury recliners and other amenities has also been supported by previous investments, including a $250 million upgrade in July. These efforts are part of the chain’s broader strategy to enhance the movie-going experience and remain competitive in the face of changing consumer behavior and industry trends.
While the overall domestic box office for 2024 is slightly behind last year’s performance, Regal has been bolstered by strong performances during peak movie-going periods, such as the Thanksgiving corridor, which saw significant box office returns from high-profile films like Moana, Wicked, and Gladiator II. The success of these releases has helped theaters, including Regal, AMC, and Cinemark, maintain strong revenue streams despite a competitive landscape.
This refinancing deal signals that Regal is well-positioned to continue its recovery and growth, with a focus on enhancing its theater offerings and securing a stronger financial future.
