AMC Networks plans new loan, notes for spinoff from Cablevision

By Sara Rosenberg

New York, March 17 - AMC Networks Inc. (Rainbow Media Holdings LLC) revealed that the new debt financing for its spinoff from Cablevision Systems Corp. will include a new senior secured credit facility and senior unsecured notes, according to a 10-12B filed with the Securities and Exchange Commission on Thursday.

The credit facility will include an undrawn revolver and a term loan.

Proceeds will be used to refinance all existing debt at Rainbow Media as well as to repay $1.25 billion of Cablevision and/or CSC Holdings LLC debt. The revolver will also be able for general corporate purposes.

The spinoff would be structured as a tax-free pro rata distribution to stockholders and is expected to be completed by mid-year 2011, subject to necessary approvals.

Following the spinoff, AMC Networks' assets would include programming networks AMC, WE tv, IFC, Sundance Channel and Wedding Central, IFC Entertainment, an independent film business, and Rainbow Network Communications, a network programming origination and distribution company.

Cablevision is a Bethpage, N.Y.-based telecommunications, media and entertainment company.

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