Carmike Cinemas plans stock offering in a bid to expand

Carmike Cinemas

Carmike Cinemas, Inc., the country’s fourth largest theater chain, said it would issue 4.5 million shares of its common stock as part of a plan to expand nationwide.

In addition, Carmike expects to grant the underwriters a 30-day option to purchase up to an additional 675,000 shares of common stock.

Carmike said it will use the proceeds from the offering for various uses, including funding potential acquisitions at a time when the U.S. exhibition industry is consolidating.

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Earlier this year, Regal Entertainment Group, the nation’s largest theater circuit, scooped up Hollywood Theaters, a Portland, Ore., chain that operates 43 theaters in 16 states, for $191 million in cash and about $47 million of assumed lease obligations. Last year, China’s Dalian Wanda Group purchased AMC Entertainment, the country’s second-largest theater circuit, for $2.6 billion.
Carmike has also been bulking up. Last October, Carmike announced a deal to buy 16 theaters with 251 screens from Dallas-headquartered Rave Review Cinemas for $19 million in cash and $100.4 million of assumed lease obligations. And last week Carmike said it acquired 52 screens in Kentucky, New Jersey and Texas from Cinemark Holdings Inc., the third largest theater chain.

Known as “America’s Hometown Theater Chain,” Carmike operates community theaters in small to mid-sized communities across the South and Midwest.

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Through acquisitions, Carmike executives said their goal is to expand the circuit to 3,000 screens in 300 locations nationwide.


As of June 30, the company had 245 theaters with 2,476 screens in 35 states.

Macquarie Capital is acting as the sole book running manager for the stock offering. B. Riley & Co., Wedbush Securities, Barrington Research, Maxim Group LLC and Ascendiant Capital Markets, LLC are acting as co-managers.


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Carmike Cinemas to buy 16 theaters from Rave Review Cinemas