AMC to get $175 million revolver as part of LBO

By Sara Rosenberg

New York, July 26 - AMC Entertainment Inc. has received a commitment for a $175 million senior secured revolving 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, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The company has also received a commitment for a $220 million senior bridge facility. The proceeds of the bridge loan will be used to provide funds to finance any repurchase of the 2011 senior subordinated notes.

JPMorgan and Citigroup are the lead banks on the proposed credit facility, with JPMorgan listed on the left.

Although the revolver is expected to be undrawn at closing, the company is allowed to borrow up to $20 million to help fund the buyout.

As part of the LBO, the company is slated to kick off a roadshow Tuesday for a three-part $625 million bond offering, consisting of $150 million of senior notes from Marquee Inc., $305 million of senior floating-rate notes from Marquee Inc. and $170 million of senior discount notes at Marquee Holdings Inc.

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 subject to various customary conditions, including 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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