Fitch: AMC unchanged

Fitch Ratings said AMC Entertainment, Inc.'s amendments and waivers to several of its debt documents have no effect on the company's current ratings or negative outlook. The company has a B issuer default rating, and the agency rates its senior secured credit facilities at BB/RR1, senior notes at B-/RR5 and senior subordinated notes at CCC/RR6.

AMC amended its bank credit facility and obtained waivers and amendments for its 8¾% senior notes due 2019 and its 9¾% senior subordinated notes due 2020. The agency said these amendments and waivers prevent the proposed acquisition of AMC Entertainment Holdings, Inc. by Dalian Wanda Group Co. Ltd. from triggering change-of-control provisions under the debt agreements.

After the acquisition closes, AMC intends to reduce debt by about $140 million by paying down all of the outstanding 8% senior subordinated notes due 2014, according to Fitch. Proceeds are expected to include $90 million of cash on hand and $50 million from funds contributed by Wanda.

The agency said the negative outlook reflects the company's weak credit metrics (interest coverage, EBITDA margins and gross leverage) relative to the ratings. Fitch calculates AMC's lease-adjusted gross leverage at 5.9 times.

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