Bulletin: National Amusements Inc.'s Covenant Amendment Slightly Credit Positive

DES MOINES (S&P Global Ratings) Sept. 12, 2023--S&P Global Ratings today said that National Amusements Inc.'s (NAI, CCC+/Negative/--) covenant amendment is slightly credit positive but does not change its belief that the company's capital structure is unsustainable. Under the terms of the amendment, NAI will pay down about $36 million of its outstanding term loan, with an additional 17.5% to be paid in the first quarter of 2024. Interest payments on the remaining term loan will increase to SOFR+300 from S+250 with an additional 250 basis points of payment-in-kind interest. The amendment will also result in the company pledging shares of a special purpose subsidiary that holds additional shares of Paramount as collateral on its debt obligation. While the amendment

...September 12, 2023 DES MOINES (S&P Global Ratings) Sept. 12, 2023--S&P Global Ratings today said that National Amusements Inc.'s (NAI, ###+/Negative/--) covenant amendment is slightly credit positive but does not change its belief that the company's capital structure is unsustainable. Under the terms of the amendment, NAI will pay down about $36 million of its outstanding term loan, with an additional 17.5% to be paid in the first quarter of 2024. Interest payments on the remaining term loan will increase to SOFR+300 from S+250 with an additional 250 basis points of payment-in-kind interest. The amendment will also result in the company pledging shares of a special purpose subsidiary that holds additional shares of Paramount as collateral on its debt obligation. While the amendment provides additional time for the company to address fundamental issues with the business, we expect NAI's EBITDA and cash flow from operations after dividend income will remain negative. The company will still...

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