Critics say a $725 million syndicated loan to Regal Cinemas Inc. may be the feel-good hit of the summer but could become a thriller in years to come.

The loan by Bank of Nova Scotia is part of a planned $3 billion buyout by Kohlberg Kravis Roberts & Co. and Hicks Muse Tate & Furst Inc. The deal not only contains a risky loan, analysts say, but worsens Regal's credit overall.

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