Marquee ups fee, prolongs consent solicitation for 12% notes

By Jennifer Chiou

New York, June 7 - Marquee Holdings Inc. announced the extension of its consent solicitation to amend the indenture of its 12% senior discount notes due 2014 to 5 p.m. ET on June 12 from June 8.

Marquee further announced that it has increased the consent fee to consenting holders to $14.44 from $10.00 for each $1,000 principal amount at maturity of notes.

The company said that the amendment would revise the restricted payments covenant to permit Marquee to make restricted payments in a total amount of $275 million prior to making an election to pay cash interest on the notes.

Other proposed changes to the indenture include a covenant by Marquee to make an election on Aug. 15, the next semi-annual accretion date under the indenture, to pay cash interest on the notes. As a result, Marquee would be required to make its first cash interest payment on Feb. 15, 2008.

The solicitation began on June 5.

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

Marquee Holdings, the parent of AMC Entertainment Inc., is a Kansas City, Mo., theatrical exhibition company.

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