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AMC Entertainment begins tender offer $250 million 8 5/8% notes
By Angela McDaniels
Tacoma, Wash., May 26 - AMC Entertainment Inc. has begun a tender offer and consent solicitation for its outstanding $250 million principal amount of 8 5/8% senior notes due 2012, according to a company news release.
The offer will expire at midnight ET on June 22.
The company is offering $1,000 for each $1,000 principal amount of notes tendered, which includes a $30 consent fee for notes tendered by 5 p.m. ET on June 8, the consent date.
Holders will also receive accrued interest up to but excluding the settlement date.
The primary purpose of the consent solicitation and proposed amendments is to eliminate substantially all of the restrictive covenants and some events of default and to reduce the required notice period contained in the optional redemption provisions of the indenture.
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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