AMC Entertainment flexes $300 million term B-3 to Libor plus 325 bps

By Sara Rosenberg

New York, Feb. 15 - AMC Entertainment Inc. reduced pricing on its $300 million six-year senior secured term loan B-3 (Ba2/BB-/BB) to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.

The loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

Commitments were due at 5 p.m. ET on Wednesday.

Allocations may go out before the end of the week, the source added.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal.

Amortization is 1% per annum, with the remainder due at maturity.

Proceeds from the new term loan and cash on hand will be used to fund a tender offer for up to $160 million of the company's $300 million of 8% senior subordinated notes due 2014 and to repay term loans due in 2013.

The tender offer for the notes expires on March 6 and is conditioned on completion of the new loan.

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

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