By Paul A. Harris
St. Louis, Jan. 19 - AMC Entertainment Inc. priced a $325 million issue of 10-year senior subordinated notes (B3/CCC+/CCC+) at par on Thursday to yield 11%, according to market sources.
The yield came at the wide end of the upwardly revised 10¾% to 11% price talk. Earlier the notes had been talked to yield 10½% to 10¾%.
Credit Suisse, Citigroup and JP Morgan ran the books for the notes, which were sold via Rule 144A with registration rights and via Regulation S.
Proceeds will be used to help finance the merger of AMC with New York City-based movie theater operator Loews Cineplex Entertainment Corp., 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.
AMC is a Kansas City, Mo., movie theater chain.
| Issuer: | AMC Entertainment Inc.
|
| Amount: | $325 million
|
| Maturity: | Feb. 1, 2016
|
| Security description: | Senior subordinated notes
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| Bookrunners: | Credit Suisse, Citigroup, JP Morgan
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 657 basis points
|
| Call features: | Callable after Feb. 1, 2011 at 105.50, 103.667, 101.833, par on and after Feb. 1, 2014
|
| Trade date: | Jan. 19
|
| Settlement date: | Jan. 26
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Fitch: CCC+
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 10¾%-11% (revised from 10½%-10¾%)
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