Marquee begins consent solicitation for 12% discount notes

By Angela McDaniels

Seattle, June 5 - Marquee Holdings Inc. said it began soliciting consent from holders of its 12% senior discount notes due 2014 on Tuesday to amend the note indenture.

The proposed amendments would revise the restricted payments covenant to allow Marquee to make $275 million of restricted payments prior to making an election to pay cash interest on the notes.

The proposed amendments would also require the company to pay cash interest on Feb. 15, 2008.

The consent solicitation will expire at 5 p.m. ET on June 8.

Noteholders who consent will receive a consent fee of $10 per $1,000 principal amount at maturity of notes.

Marquee needs consents from holders of a majority of the notes to amend the indenture, according to a company news release.

J.P. Morgan Securities Inc. (800 245-8812 or 212 270-3994) is the solicitation agent, and MacKenzie Partners, Inc. (800 322-2885 or 212 929-5500) is the information agent.

The company noted that regardless of whether it completes the consent solicitation, a new $400 million five-year term loan facility will require Marquee to pay cash interest on Feb. 15, 2008. The loan will be borrowed by a newly formed holding company that will become Marquee's parent company.

If the amendment is approved, the company will use cash on hand at subsidiary AMC Entertainment Inc. to pay a dividend of up to $275 million to Marquee's current stockholders.

Marquee is the parent company of AMC Entertainment, a movie theater owner and operator based in Kansas City, Mo.

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