S&P rates AMC Entertainment loan BB

Standard & Poor’s said it assigned its BB issue-level rating and 1 recovery rating to AMC Entertainment Inc.’s refinanced and upsized $1.03 billion senior secured credit facility, which consists of a $150 million revolver due 2020 and an $881 million term loan B due 2022.

The 1 recovery rating indicates an expectation for very high recovery (90%-100%) of principal in the event of a payment default.

The company will use the proceeds to repay its existing $906 million senior secured credit facility, to retire its remaining 9¾% senior subordinated notes, and for general corporate purposes. The issue-level rating is two notches above S&P’s corporate credit rating on AMC.

Pro forma for the debt offering, AMC's adjusted leverage remains virtually unchanged at 4.9x as of Sept. 30, 2015,” S&P said in a news release.

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