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AMC Entertainment sets Jan.5 launch for $850 million facility
By Sara Rosenberg
New York, Dec. 22 - AMC Entertainment Inc. has scheduled a bank meeting for Jan. 5 at 1:30 p.m. ET to launch its proposed up to $850 million senior secured credit facility, according to a market source.
Citigroup Global Markets Inc., JPMorgan Chase Bank and Credit Suisse First are the lead banks on the deal.
The facility, as committed, consists of a $650 million term loan with an interest rate of Libor plus 250 basis points and a $200 million revolver with an interest rate of Libor plus 175 bps, according to previous filings with the Securities and Exchange Commission.
The facility is being obtained for AMC's merger with Loews Cineplex Entertainment Corp., and proceeds will be used to refinance both Loews' and AMC's existing senior secured credit facilities.
Under the agreement, Marquee Holdings, AMC's current holding company, which is controlled by affiliates of J.P. Morgan Partners LLC and Apollo Management LP, will continue as the holding company for the merged company. The current stockholders of LCE Holdings Inc., Loew's current holding company, including affiliates of Bain Capital Partners, The Carlyle Group and Spectrum Equity Investors, would hold about 40% of the outstanding capital stock of the continuing holding company.
On Wednesday, AMC and Loews reached agreements with the United States Department of Justice and the attorneys general of California, the District of Columbia, Illinois, Massachusetts, New York, and Washington under which the companies have consented to sell 10 theatres in order for the merger to proceed.
The merger is anticipated to close in the early part of the first quarter of 2006.
The merged theatrical exhibition company will be called AMC Entertainment and will be based in Kansas City, Mo.
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