AMC Entertainment launches $775 million loan at Libor plus 300 bps

By Sara Rosenberg

New York, April 11 - AMC Entertainment Holdings Inc. launched with a call on Thursday a $775 million senior secured covenant-light term loan B due April 30, 2020 that is talked at Libor plus 300 basis points with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The loan has 101 soft call protection for six months, the source said.

There is an accordion of the greater of $450 million or 2.25 times gross senior secured leverage.

Amortization is 1% per annum.

Security is substantially all of the company's assets, as well as those of each subsidiary guarantor, and a 65% pledge of equity interest in foreign subsidiaries, the source continued.

Mandatory prepayments are 100% of proceeds from asset sales, 100% of debt issuances and 50% of excess cash flow subject to 2.5 times net senior secured leverage.

Proceeds will be used to refinance existing term loan debt.

In addition to the term loan, the company is looking to get a five-year revolver with a size in the area of $125 million to $150 million, the source added.

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

Commitments are due at 5 p.m. ET on April 18, and closing is expected to occur on April 30.

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

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