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AMC, Marquee begin tender offers for 11% notes, 12% discount notes
By Angela McDaniels
Tacoma, Wash., Dec. 1 - AMC Entertainment Inc. began a tender offer for its $325 million of 11% senior subordinated notes due 2016, and parent company Marquee Holdings Inc. began a tender offer for its $240.8 million of 12% senior discount notes due 2014, according to an AMC news release.
The purchase price is $1,061 per $1,000 principal amount of 11% notes and $827 per $1,000 principal amount (or $792.09 accreted value) of 12% notes. These amounts include a consent payment of $30 for each note tendered by 5 p.m. ET on Dec. 14.
The companies will also pay accrued interest up to but excluding the settlement date.
The tender offers will expire at midnight ET on Dec. 29.
The companies are also soliciting consents to proposed amendments to the indentures governing the notes that would eliminate substantially all of the restrictive covenants, eliminate some events of default and related provisions and reduce the required notice period contained in the optional redemption provisions.
The companies plan to redeem any notes that remain outstanding once the tender offers are completed. The redemption price will be $1,055 for each $1,000 principal amount of 11% notes and $823.77 per $1,000 principal amount (or $792.09 accreted value) of 12% notes.
AMC said it plans to redeem any leftover 11% notes as soon after Feb. 1 as it can.
The tender offers are contingent on AMC raising at least $600 million of proceeds through an offering of senior subordinated notes due 2020 and the receipt of enough consents to adopt the proposed amendments.
The dealer manager and solicitation agent for the tender offers is Goldman Sachs & Co. (800 828-3182 or 212 855-9063). The information agent is Global Bondholder Services Corp. (866 470-4500 or 212 430-3774).
AMC is a theatrical exhibition and entertainment company based in Kansas City, Mo.
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