AMC Entertainment settles early tenders for 77.3% of 8¾% notes

By Jennifer Chiou

New York, Feb. 10 - AMC Entertainment Inc. announced that it accepted for purchase the previously announced early tenders for $463.7 million, or 77.3%, of its $600 million principal amount of 8¾% senior notes due 2019 for a total payment of $503.3 million.

Those tenders were received by 5 p.m. ET on Jan. 29, the consent date.

As reported, the company received enough consents to amend the note indenture to eliminate substantially all of the restrictive covenants and events of default provisions. The supplemental indenture has become operative.

The purchase price was $1,068.75 for each $1,000 principal amount of notes tendered by the consent deadline, including a consent payment of $30.00, plus accrued interest.

The tender offer will continue until 11:59 p.m. ET on Feb. 12. It began on Jan. 16.

Those who tender after the consent deadline will receive the total payment less the consent payment. Holders also will receive accrued interest to but excluding the settlement date.

The offer is conditioned on the issue of debt with enough proceeds to fund the offer, and the company priced an upsized $375 million issue of eight-year senior subordinated notes (B3/B-) at par to yield 5 7/8% on Feb. 4.

Global Bondholder Services Corp. (866 807-2200 or 212 430-3774) is the information agent. Citigroup Global Markets Inc. (800 558-3745 and 212 723-6106) is the dealer manager.

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

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