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AMC gets needed consents in offer for $250 million 8 5/8% notes
By Susanna Moon
Chicago, June 9 - AMC Entertainment Inc. said it received tenders and consents from holders of $238,065,000, or 95.23%, of its outstanding 8 5/8% senior notes due 2012 by 5 p.m. ET on June 8, the consent deadline.
AMC said the consents received exceeded the number needed to approve the proposed amendments to the indenture.
Holders who tendered by the consent date will receive $1,030 per $1,000 principal amount of the notes, including a $30.00 consent fee.
Holders will also receive accrued interest up to but excluding the settlement date.
AMC will execute a supplemental indenture that will eliminate substantially all of the restrictive covenants and certain events of default and reduce the required notice period contained in the optional redemption provisions. The supplemental indenture will become operative Wednesday upon payment for the notes tendered.
The tender offer and consent solicitation for $250 million principal amount of the 8 5/8% notes began May 26. The offer will expire at midnight ET on June 22.
The company said it plans to redeem any notes that remain outstanding after the tender offer at a price of $1,021.56 per $1,000 principal amount as soon as practicable after Aug. 15.
The company will use proceeds from a private placement of $300 million principal amount of senior notes due 2019 to fund the tender offer.
The tender offer is subject to the raising of at least $300 million in gross proceeds through the private placement and the receipt of the needed consents in order to adopt the proposed amendments.
Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-1862) is the dealer manager, and Global Bondholder Services Corp. (866 488-1500 or 212 430-3774) is the information agent.
AMC Entertainment Inc. is a theatrical exhibition and entertainment company based in Kansas City, Mo.
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