AMC Entertainment talks $325 million 10-year notes at 10½%-10¾%

By Paul A. Harris

St. Louis, Jan. 17 - AMC Entertainment Inc. talked its $325 million offering of 10-year senior subordinated notes at 10½% to 10¾% on Tuesday, according to market sources.

Pricing is expected on Thursday.

Credit Suisse, Citigroup and JP Morgan are joint bookrunners for the notes, which are being sold via Rule 144A with registration rights and via Regulation S.

The notes come with five years of call protection.

Proceeds will be used to help finance the merger of AMC with New York City-based movie theater operator Loews Cineplex Entertainment Corp., as well as to refinance AMC's and Loews' existing bank debt and to fund the tender for $315 million of Loews' outstanding 9% senior subordinated notes due 2014.

Moody's Investors Service assigns is B3 rating to the notes. Both Fitch Ratings and Standard & Poor's rate the notes CCC+.

AMC is a Kansas City, Mo., movie theater chain.

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