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AMC to get new credit facility, sell bonds as part of LBO
By Sara Rosenberg
New York, July 22 - AMC Entertainment Inc. plans to issue high-yield bonds and enter into a new credit facility as part of its about $2 billion leveraged buyout by Marquee Holdings Inc., an investment vehicle owned by JPMorgan Partners and Apollo Management LP.
The company has received about $625 million fully committed financing from JPMorgan and Citigroup that will include a senior secured revolving credit facility, the issuance of senior unsecured notes at the operating company level and possibly the issuance of senior discount notes at the holding company level, company officials said in a conference call Thursday.
JPMorgan and Citigroup are the lead banks on the proposed credit facility, with JPMorgan listed on the left, a market source told Prospect News.
"We do believe the conditions in the market today are very strong and we will move quickly," company officials said regarding the debt transactions.
The company will also get an equity investment of about $785 million from the sponsors to help fund the transaction.
Under the acquisition agreement, JPMorgan Partners will own about 50.1% of the company and Apollo will own about 49.9% of the company. The $2 billion transaction value consists of $1.67 billion in equity and the assumption of $748 million in debt less $399 million in cash and equivalents.
Closing of the acquisition is conditioned upon receipt of shareholder and regulatory approvals and the completion of financing.
Goldman, Sachs & Co. served as financial adviser to AMC. JPMorgan Securities Inc. advised Marquee Holdings Inc. on the transaction. Citigroup Global Markets Inc. served as financial adviser to Apollo.
AMC is a Kansas City, Mo., theatrical exhibition company.
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