AMC Networks amends, shrinks revolver to $400 million

By William Gullotti

Buffalo, N.Y., April 24 – AMC Networks, Inc. amended and downsized the credit agreement with its subsidiary AMC Networks Entertainment LLC as borrower and JPMorgan Chase Bank, NA as administrative agent on April 19, according to an 8-K filing with the Securities and Exchange Commission.

The amendment slashed the amount of revolver commitments to $400 million from $500 million, yet increased AMC Networks’ ability to incur additional debt in the future to provide additional flexibility for future financings, including increasing the amount of the incremental debt basket to the greater of $1.2 billion and the amount that would not cause a senior secured leverage ratio to exceed 3.00 to 1.00 on a pro forma basis.

The interest basis was also updated to SOFR from Libor. Borrowings will bear interest at SOFR plus a margin ranging from 125 basis points to 225 bps, depending on the company’s cash flow ratio.

The maturity date of the revolver remains Feb. 8, 2026.

In addition to acting as administrative agent, JPMorgan is also the collateral agent.

JPMorgan Securities LLC and BofA Securities, Inc. are the joint lead arrangers, joint bookrunners and co-documentation agents.

Bank of America, NA is the syndication agent.

AMC is a New York-based entertainment company.

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