Fitch: AMC unchanged on debt refinancing

Fitch Ratings said it will maintain the BB+ with recovery rating of RR1 on AMC Entertainment Inc.’s proposed senior secured credit facility, which is expected to be used to refinance the company’s existing secured credit facility.

The facility will be comprised of a $150 million revolver maturing in 2020 and an $881 million term loan due in 2022.

The issuer default rating on AMC Entertainment is B+ with a stable outlook.

The agency said it views the transaction favorably as the transaction will benefit AMC’s maturity schedule and financial flexibility by extending the term loan and revolver maturities to 2022 and 2020, respectively.

The terms of the new credit facility, including the security and guaranty structure are expected to be substantially similar to the existing term loan due 2020, Fitch said.

Outside of the extension of the company’s maturity profile and an expected reduction of interest expense related to this transaction, there have been no material changes to AMC’s credit profile, the agency added.

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