AMC Entertainment launches amendment to waive change-of-control

By Sara Rosenberg

New York, June 13 - AMC Entertainment Holdings Inc. held a call on Wednesday to launch an amendment to its senior secured credit facility to allow for the change of control through its purchase by Dalian Wanda Group Co. Ltd., according to an 8-K filed with the Securities and Exchange Commission.

Also, the amendment would change the company's fiscal year to the calendar year-end.

Lenders are being offered a 25 basis point amendment fee, a market source said.

Consents are due on June 21, with closing targeted for June 25.

Citigroup Global Markets Inc. is the lead bank on the deal.

The company is also looking to amend its 8¾% senior notes and 9¾% senior subordinated notes to waive the change-of-control, and plans to retire its 8% senior subordinated notes at par upon closing of the buyout.

The notes repayment will be funded by a $50 million equity contribution from Wanda and cash on hand and will reduce total leverage by around 0.4 times.

Under the agreement, AMC is being acquired for about $2.6 billion.

As part of the transaction, Dalian Wanda intends to invest up to an additional $500 million in AMC over time to fund strategic and operating initiatives.

Closing is expected by September, subject to customary conditions and the receipt of U.S. and China regulatory approvals.

AMC is a Kansas City, Mo.-based movie exhibitor.

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