AMC to sell $475 million, £250 million subordinated notes on Monday

By Paul A. Harris

Portland, Ore., March 13 – AMC Entertainment Holdings Inc. is expected to price $475 million and £250 million of senior subordinated notes (existing ratings B2/B+) on Monday following a mid-morning conference call with investors, according to market sources.

The dollar-denominated tranche features $475 million of 10-year notes which come with five years of call protection.

The sterling-denominated tranche comes as a £250 million add-on to AMC’s 6 3/8% senior subordinated notes due Nov. 15, 2024.

Those notes feature a make-whole call at Treasuries plus 50 basis points until Nov. 15, 2019, then become callable at 104.781. They also feature a 35% equity clawback at 106.375 until Nov. 15, 2019.

The original £250 million issue priced at par on Oct. 28, 2016.

The add-on notes are talked at 105.75 to 106.25. Books were scheduled to close at 11:30 a.m. ET.

Official talk on the dollar-denominated notes had not surfaced at press time. However the dollar notes are in the market with initial guidance of 6% to 6¼%, a trader said.

Citigroup Global Markets Inc. is the left bookrunner for the Rule 144A and Regulation S with registration rights offers. BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and HSBC are the joint bookrunners.

The Leawood, Kan.-based movie exhibition company plans to use the proceeds to help fund its acquisition of Nordic Cinema Group.

The sterling-denominated 6 3/8% add-on notes will become fungible with the original 6 3/8% notes when the acquisition closes.

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