AMC launches $2 billion term loan B at Libor plus 275-300 bps

By Sara Rosenberg

New York, March 5 – AMC Entertainment Holdings Inc. held a lender call at 2 p.m. ET on Tuesday to launch a $2 billion seven-year covenant-light term loan B that is talked at Libor plus 275 basis points to 300 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan B has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Incremental starter basket under the term loan is the greater of $1 billion and 100% of LTM adjusted EBITDA. There is a ratio prong of unlimited subject to a first-lien net leverage ratio of 3 times or, if incurred in connection with a permitted acquisition, no worse first-lien net leverage, the source continued.

Citigroup Global Markets Inc. is the lead arranger on the deal and the administrative agent.

Commitments are due at 5 p.m. ET on March 14, the source added.

Proceeds will be used to refinance existing credit facilities and redeem 5.875% senior subordinated notes due 2022 and 6% senior secured notes due 2023.

AMC is a Leawood, Kan.-based movie exhibitor.

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