Moody's gives AMC loans Ba1

Moody's Investors Service said it assigned Ba1 ratings to AMC Networks Inc.'s proposed senior secured credit facilities, which include a $1.48 billion term loan due 2019 and a $500 million revolving credit facility due 2018.

Proceeds from the credit facilities, along with balance sheet cash, will be used to fund the $1 billion acquisition of Chellomedia from Liberty Global plc and to refinance the company's existing $880 million senior secured term loan.

Ratings on the existing credit facility will be withdrawn when the transaction closes. All other ratings remain unchanged, including the Ba3 corporate family rating and Ba3-PD probability of default rating.

The outlook is positive.

The refinancing transaction favorably impacts the company's debt maturity profile as it extends the maturities of the revolver and term loan to 2018 and 2019 respectively, Moody's said. Total debt will increase by $600 million, and there are no other material changes to the prior credit facility terms including the guarantee and collateral package or financial maintenance covenants.

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