Bulletin: National Amusements Inc.?s $125 Million Preferred Equity Raise Reduces Reported Debt; Cash Flow Remains Negative

This report does not constitute a rating action. CHICAGO (S&P Global Ratings) May 31, 2023—S&P Global Ratings today said that National Amusement Inc.?s (NAI; CCC+/Negative) preferred equity issuance of $125 million will reduce senior secured debt but cash flow remains negative, and its capital structure is still unsustainable. NAI entered into an agreement to sell $125 million of mandatory redeemable preferred equity shares to BDT Capital Partners. The shares bear interest at 7.75% annually, payable in either cash or payment-in-kind (PIK) payments. The instrument matures in 2028 or sooner depending on certain events in the agreement. It will use proceeds to pay down NAI?s revolver and term loans borrowed by subsidiary NAI Entertainment Holdings LLC. After the debt reduction, certain

...May 31, 2023 This report does not constitute a rating action. CHICAGO (S&P Global Ratings) May 31, 2023--S&P Global Ratings today said that National Amusement Inc.'s (NAI; ###+/Negative) preferred equity issuance of $125 million will reduce senior secured debt but cash flow remains negative, and its capital structure is still unsustainable. NAI entered into an agreement to sell $125 million of mandatory redeemable preferred equity shares to BDT Capital Partners. The shares bear interest at 7.75% annually, payable in either cash or payment-in-kind (PIK) payments. The instrument matures in 2028 or sooner depending on certain events in the agreement. It will use proceeds to pay down NAI's revolver and term loans borrowed by subsidiary NAI Entertainment Holdings LLC. After the debt reduction, certain Paramount Global shares will be released and no longer pledged as collateral. The agreement also includes the issuance of certain warrants and provides for a shelf offering of additional mandatory...

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