NAI Entertainment Holdings LLC's Proposed $375 Million Senior Secured Credit Facility Rated 'BB' (Recovery Rating: '1')

CHICAGO (S&P Global Ratings) April 9, 2018--S&P Global Ratings today assigned its 'BB' issue-level rating and '1' recovery rating to U.S.-based movie exhibitor NAI Entertainment Holdings LLC's (NAIEH) proposed $375 million senior secured credit facility, comprising a $75 million senior secured revolver due 2023 and a $300 million senior secured term loan due 2025. The '1' recovery rating indicates our expectation for very high recovery (90%-100%; rounded estimate: 95%) of principal and interest in the event of a payment default. Our 'B+' corporate credit ratings on NAIEH and its parent company National Amusements Inc. (NAI), which we rate on a consolidated basis, are unchanged because we view this transaction as leverage and cash flow neutral. NAIEH will use the proceeds

...CHICAGO (S&P Global Ratings) April 9, 2018--S&P Global Ratings today assigned its '##' issue-level rating and '1' recovery rating to U.S.-based movie exhibitor NAI Entertainment Holdings LLC's (NAIEH) proposed $375 million senior secured credit facility, comprising a $75 million senior secured revolver due 2023 and a $300 million senior secured term loan due 2025. The '1' recovery rating indicates our expectation for very high recovery (90%-100%; rounded estimate: 95%) of principal and interest in the event of a payment default. Our 'B+' corporate credit ratings on NAIEH and its parent company National Amusements Inc. (NAI), which we rate on a consolidated basis, are unchanged because we view this transaction as leverage and cash flow neutral. NAIEH will use the proceeds from the proposed credit facility to refinance its existing $300 million senior secured notes and $75 million senior secured revolver. The senior secured revolver and senior secured term loan will be secured on a first-priority...

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