Kansas City, MO - AMC Issues $1.4 Billion in Debt to Pay for Carmike, Odeon Acquisitions

posted by ThrHistoricalSociety on October 25, 2016 at 1:44 pm

From The Wrap: AMC Entertainment Holdings, the parent company of cinema chain AMC Theatres, announced in a Thursday filing that it would issue $1.4 billion in new debt to finance two billion-dollar acquisitions it has agreed on this year.

In July, AMC — which is owned by Chinese entertainment giant Dalian Wanda Group — agreed to buy British theater chain Odeon & UCI in a deal valued at $1.2 billion. That same month, the board of Carmike Cinemas, the U.S.’ fourth-largest exhibitor, agreed to accept AMC’s second and sweetened offer for $1.2 billion.

The Carmike acquisition would make AMC the country’s biggest theatrical exhibitor, passing current No. 1 Regal Cinemas. Combined, Odeon and Carmike control more than 5,000 screens, and completing both deals would make AMC parent Wanda — which also owns China’s biggest theater chain — the first exhibitor to manage more than 10,000 screens worldwide.

AMC’s debt offering includes about $900 million of a a combination of dollar-denominated senior subordinated notes due in 2026 and sterling-denominated senior subordinated notes due in 2024. The company is also offering about $500 million in dollar-denominated term loans due in 2023.

“The net proceeds from the Notes offering, together with the borrowings under the New Term Loans, cash on hand and other sources are intended to be used to fund the acquisitions of Odeon & UCI Cinemas Holdings Limited and Carmike Cinemas, Inc., repay certain outstanding debt of Odeon & UCI and fund related transaction fees and expenses,” AMC said in the filing.

Story link: http://www.thewrap.com/amc-issues-1-4-billion-in-debt-to-pay-for-carmike-and-odeon-uci-acquisitions/

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