AMC Entertainment to launch $2.225 billion credit facility on Thursday

By Sara Rosenberg

New York, June 7 - AMC Entertainment Holdings Inc. (Rainbow Media Holdings LLC) is set to hold a bank meeting at 1 p.m. ET on Thursday at the W Hotel in New York to launch its proposed $2.225 billion senior secured credit facility, according to a market source.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal, with JPMorgan as the left lead.

The facility consists of a $500 million five-year revolver, a $1.16 billion six-year term loan A and a $565 million seven-year term loan B, the source said.

The facility, along with an expected $700 million senior notes offering, are being done in connection with Rainbow's spinoff from Cablevision Systems and will be used to refinance all existing debt at Rainbow Media as well as to repay $1.25 billion of Cablevision and/or CSC Holdings LLC debt. The revolver will also be available for general corporate purposes.

The spinoff will be structured as a tax-free pro rata distribution to stockholders and is expected to be completed by the end of this month.

Following the spinoff, AMC's assets would include programming networks AMC, WE tv, IFC, Sundance Channel and Wedding Central, IFC Entertainment, an independent film business, and Rainbow Network Communications, a network programming origination and distribution company.

Cablevision is a Bethpage, N.Y.-based telecommunications, media and entertainment company.

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