S&P: Odeon on positive watch

S&P said it placed Odeon & UCI Cinemas Group Ltd.’s B- corporate credit rating on CreditWatch with positive implications.

The company’s debt also was placed on positive watch, the agency said.

The watch placement follows news that AMC Entertainment Holdings has entered into a definitive agreement to acquire Odeon for £921 million in cash, stock consideration and assumed debt, S&P said.

Under the proposed transaction, which is expected to close by the end of the fourth quarter, Odeon will become part of the financially stronger AMC, the agency said.

All of Odeon's outstanding debt is expected to be redeemed as part of the transaction, S&P said.

If the acquisition is completed, the combined company will be the largest movie theater operator in the world with 627 theaters and more than 7,600 screens in eight countries, the agency said.

S&P said it doesn't expect the Odeon acquisition to affect AMC's fair business risk profile assessment, though it will increase the size, scale and diversification of the company's exhibition assets.

This should provide some benefit in film rental and concession negotiations for the combined entity, the agency said.

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