Moody's rates AMC loans Ba3, notes B3

Moody's Investors Service said it assigned a Ba3 rating to the proposed bank facilities of AMC Entertainment Inc. - consisting of a $200 million senior secured revolving credit facility due 2012 and $650 million senior secured term loan due 2013 - and a B3 rating to AMC's new $325 million senior subordinated notes due 2016. All other AMC and Marquee Holdings Inc. ratings were affirmed.

The outlook was revised to stable from negative.

AMC expects to close on its previously announced merger with Loews Cineplex Entertainment Corp. in the beginning of this year and will use proceeds from the bank credit facilities to repay existing bank debt at Loews Cineplex, as well as to provide liquidity for the combined entity.

Moody's said the B1 corporate family rating reflects AMC's high financial risk, sensitivity to product from movie studios and a weak industry growth profile.

These negatives are offset, however, by the advantages of scale, expected benefits from synergies following the combination and the company's strong liquidity.

© 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.