By Paul A. Harris
St. Louis, May 27 - AMC Entertainment Inc. doubled the size of its notes offering to $600 million from $300 million on Wednesday, according to market sources.
The Kansas City, Mo.-based movie theater company priced its new 8¾% 10-year senior notes (B1/B-) at 97.582 to yield 9 1/8%.
The yield came at the tight end of the 9¼% area yield talk, while the price came within the 2 to 3 points of original issue discount price talk.
The new AMC 9¼% notes due June 2019 broke to 97¾ bid, 98¼ offered in early trading, according to a hedge fund manager.
Credit Suisse, Citigroup, Deutsche Bank Securities and JP Morgan were joint bookrunners for the Rule 144A with registration rights/Regulation S offer.
A portion of the proceeds will be used to fund the company's tender for its $250 million of 8 5/8% senior notes due 2012 and for general corporate purposes, which may include the retirement of any of the 2012 notes not purchased in the tender, or portions of other debt of the company or its parent companies through open market purchases or other means.
| Issuer: | AMC Entertainment Inc.
|
| Amount: | $600 million (increased from $300 million)
|
| Maturity: | June 1, 2019
|
| Security description: | Senior notes
|
| Bookrunners: | Credit Suisse, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc.
|
| Coupon: | 8¾%
|
| Price: | 97.582
|
| Yield: | 9 1/8%
|
| Spread: | 558 bps
|
| Call protection: | Five years |
|
| Trade date: | May 27
|
| Settlement date: | June 9
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 9¼% area yield with 2 to 3 points of OID
|
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