Marquee gets consents for 99.32% of 12% notes by close of solicitation

By Laura Lutz

Des Moines, June 12 - Marquee Holdings Inc. announced that it received consents for $301.925 million principal amount at maturity, or 99.32%, of its 12% senior discount notes due 2014 by the end of the consent solicitation at 5 p.m. ET on June 12.

As a result, the company has executed a supplemental note indenture that revises the restricted payments covenant to permit Marquee to make restricted payments in a total amount of $275 million prior to making an election to pay cash interest on the notes.

Other changes under the supplemental indenture include a covenant by Marquee to make an election on Aug. 15, the next semiannual accretion date under the indenture, to pay cash interest on the notes. As a result, Marquee would be required to make its first cash interest payment on Feb. 15, 2008.

On June 7, the consent solicitation was extended to June 12 from June 8.

The same day, Marquee announced that it increased the payment to consenting holders to $14.44 from $10.00 for each $1,000 principal amount at maturity of notes.

The solicitation began on June 5.

J.P. Morgan Securities Inc. (800 245-8812 or call collect 212 270-3994) was the solicitation agent. MacKenzie Partners, Inc. (800 322-2885 or call collect 212 929-5500) was the information agent.

Marquee Holdings, the parent of AMC Entertainment Inc., is a Kansas City, Mo., theatrical exhibition company.

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