S&P gives AMC Entertainment notes B

Standard & Poor's said it assigned its B issue-level rating and 5 recovery rating to AMC Entertainment Inc.'s proposed $600 million senior subordinated notes due 2025.

The 5 recovery rating indicates an expectation for modest recovery (10%-30%; upper half of the range) of principal in the event of a payment default.

Proceeds will be used to repay the company’s existing $600 million 9¾% senior subordinated notes due 2020.

The issue-level rating is one notch below AMC’s corporate credit rating.

Pro forma for the debt offering, adjusted leverage remains virtually unchanged at about 5 times as of March 31. S&P expects AMC to continue to decrease leverage in 2015 and 2016 to the mid- to high-4 times area – in line with its "aggressive" financial risk profile assessment – as a result of EBITDA growth from continued operating performance improvements and stronger box office performance.

© 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.