Theaters sale closes

The sale of Consolidated Theatres, a Hawaii movie operator founded in 1917, to California-based cinema operator Reading International, Inc., closed yesterday for $69.3 million.

The deal for the cinemas, which have a total of 181 screens and generate revenues of $80 million annually, had been announced in October.

Nine of the complexes are located on Oahu and Maui, representing nearly 70 percent of Hawaii box office receipts reported in 2007, the company said yesterday.

The other six complexes are located in California, and consist of a 16-screen complex in Bakersfield, a 16-screen complex in Sonoma County, and four locations in San Diego.

The purchase was financed primarily by a $50 million term loan and a $5 million revolving line of credit provided by institutional lenders.

An additional $21 million of financing was provided under a term loan from an affiliate of the seller, Pacific Theatres Exhibition Corp., which agreed to provide up to $3 million of additional term loans to Reading at its request.