By Paul A. Harris
Portland, Ore., Feb. 2 – AMC Entertainment Holdings, Inc. priced an upsized $950 million issue of seven-year first-lien notes (Caa1/B-) at par to yield 7½% on Wednesday, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 7½% to 7¾% yield talk. Initial guidance was 7½% to 8%.
Timing was accelerated. When announced on Wednesday morning the deal had been expected to remain in the market until Thursday.
Demand for the bonds was $1.2 billion to $1.3 billion and building around lunch time Wednesday, a trader said.
The new AMC Entertainment 7½% notes due February 2029 were going out at 99¾ bid, par ¼ offered, the source added.
Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were Barclays, Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC.
The Leawood, Kan.-based motion picture exhibitor plans to use the proceeds to refinance its 10½% first-lien notes due 2025. The incremental proceeds resulting from the $450 million upsize of the deal, along with cash from the balance sheet, will be used to redeem the 15% first-lien notes due 2026 and the 10½% first-lien notes due 2026.
| Issuer: | AMC Entertainment Holdings, Inc.
|
| Amount: | $950 million, increased from $500 million
|
| Issue: | First-lien notes
|
| Maturity: | Feb. 15, 2029
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| Left bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | Barclays, Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 577 bps
|
| First call: | Feb. 15, 2025 at 103.75
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7½% to 7¾%
|
| Marketing: | Drive-by
|
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