AMC, Loews to refinance existing loans as part of merger

By Sara Rosenberg

New York, June 21 - AMC Entertainment Inc. and Loews Cineplex Entertainment Corp. plan on refinancing their credit facilities in connection with their merger into one entity, according to a company news release.

The merger will not constitute a change of control for purposes of the outstanding senior notes of AMC's holding company, Marquee Holdings Inc., or the outstanding senior notes or senior subordinated notes of AMC.

It has not yet been determined whether the merger will require a change-of-control repurchase offer under Loews' outstanding 9% senior subordinated notes due 2014, but, just in case, the companies have secured commitments to refinance these notes.

The merged theatrical exhibition company will be called AMC Entertainment Inc. and will be based in Kansas City, Mo.

Marquee Holdings, AMC's current holding company, which is controlled by affiliates of J.P. Morgan Partners LLC and Apollo Management LP, will continue as the holding company for the merged company. The current stockholders of LCE Holdings Inc., Loew's current holding company, including affiliates of Bain Capital Partners, The Carlyle Group and Spectrum Equity Investors, would hold about 40% of the outstanding capital stock of the continuing holding company.

Completion of the merger, which is anticipated to occur within the next six to nine months, is subject to the satisfaction of customary closing conditions, including antitrust approval and financing.

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