AMC Entertainment offers to buy back up to $160 million of 8% notes

By Angela McDaniels

Tacoma, Wash., Feb. 7 - AMC Entertainment Inc. began a tender offer for up to $160 million of its $300 million of outstanding 8% senior subordinated notes due 2014, according to a company news release.

The company will pay $1,002.50 per $1,000 principal amount of notes. This includes an early tender premium of $30.00 for each note tendered by 5 p.m. ET on Feb. 21, the early tender date.

Holders will also receive accrued interest up to but excluding the applicable settlement date.

The tender offer will expire at 11:59 p.m. ET on March 6.

The company may choose to settle notes tendered by the early tender date prior to the offer expiration.

If more than $160 million of notes are tendered, the company will accept notes for purchase on a prorated basis.

If less than $160 million of notes are tendered, the company plans to redeem an amount of notes equal to the difference between $160 million and the amount tendered. The redemption would be made at par after the final settlement date.

The company will fund the tender offer with a portion of the proceeds of new term loans it will receive under an amendment to its senior credit facilities. The tender offer is subject to the successful amendment of credit facilities.

The dealer manager is Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106). The information agent is Global Bondholder Services Corp. (866 470-4500 or 212 430-3774).

AMC operates movie theaters and is based in Kansas City, Mo.

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