AMC plans to apply IPO proceeds to term loan, 12% notes repayments

By Jennifer Chiou

New York, July 14 - AMC Entertainment Inc. intends to use the proceeds from its planned $450 million initial public offering of common stock to retire all $240.8 million of its 12% senior discount notes due Aug. 15, 2014 and to repay all $198.3 million of borrowings under AMC Entertainment Holdings, Inc.'s term loan facility, according to an S-1 filing with the Securities and Exchange Commission.

The repayment of the loan borrowings is slated to occur first, followed by the notes repayment and then a $29.2 million lump-sum payment to the company's sponsors under a fee agreement.

The filing noted that borrowings under the term loan facility mature on June 13, 2012.

AMC is a theatrical exhibition and entertainment company based in Kansas City, Mo.

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