AMC Entertainment restructures $625 million three-part deal, issues talk

By Paul A. Harris

St. Louis, Aug. 5 - AMC Entertainment Inc. issued price talk Thursday on a combined $625 million high-yield offering that is expected to price Friday in three tranches, according to a market source.

Marquee Inc., an entity that will ultimately be merged into AMC Entertainment, restructured its tranches (B2), shifting $100 million to the fixed-rate tranche from the floating-rate tranche.

Marquee increased its tranche of eight-year non-call-four-year senior notes to $250 million from $150 million. The tranche is talked to yield 8 3/8% to 8 5/8%.

Meanwhile, Marquee cut its offering of seven-year senior floating-rate notes to $205 million from $305 million. Price talk on the issue is Libor plus 425 basis points.

Also, Marquee Holdings Inc. plans to issue $170 million of 10-year senior discount notes, which are talked at 11½% to 11¾%.

Citigroup and JP Morgan are the bookrunners for the Rule 144A/Regulation S offerings, which have registration rights.

Proceeds will be used to help finance the acquisition of AMC Entertainment Inc. by Marquee Holdings Inc., a newly created investment vehicle owned by affiliates of J.P. Morgan Partners, the private equity arm of JP Morgan Chase & Co., and affiliates of Apollo Management LP.

AMC Entertainment is a Kansas City, Mo.-based movie theater chain.

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