AMC lowers pricing on $775 million term loan to Libor plus 275 bps

By Sara Rosenberg

New York, April 18 - AMC Entertainment Holdings Inc. trimmed pricing on its $775 million senior secured covenant-light term loan B (Ba2/BB-/BB) due April 30, 2020 to Libor plus 275 basis points from Libor plus 300 bps, according to a market source.

In addition, the Libor floor was lowered to 0.75% from 1% and the original issue discount was tightened to 99¾ from 991/2, the source said.

The loan still has 101 soft call protection for six months.

There is an accordion of the greater of $450 million and 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.

Recommitments are due at noon ET on Friday, the source added.

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.

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

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.