Published on 3/13/2017 in the Prospect News High Yield Daily.
New Issue: AMC prices $475 million, £250 million senior subordinated notes
By Paul A. Harris
Portland, Ore., March 13 – AMC Entertainment Holdings Inc. completed a quick-to-market two-part senior subordinated notes deal (B2/B+) on Monday, according to a syndicate source.
The offering included $475 million of new 10-year notes that priced at par to yield 6 1/8%. The yield printed at the tight end of the 6 1/8% to 6¼% yield talk. Initial guidance was 6% to 6¼%.
In addition the company priced a £250 million add-on to its 6 3/8% senior subordinated notes due Nov. 15, 2024 at 106, resulting in a 5.14% yield to worst and a 5.407% yield to maturity. The reoffer price came in the middle of the 105.75 to 106.25 price talk.
Citigroup Global Markets Inc. was the left bookrunner. BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and HSBC were the joint bookrunners.
The Leawood, Kan.-based movie exhibition company plans to use the proceeds to help fund its acquisition of Nordic Cinema Group.
| Issuer: | AMC Entertainment Holdings, Inc.
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| Securities: | Senior subordinated notes
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| Left bookrunner: | Citigroup
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| Joint bookrunners: | BofA Merrill Lynch, Barclays, Credit Suisse, HSBC
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| Trade date: | March 13
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| Settlement date: | March 17
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| Ratings: | Moody’s: B2
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| Standard & Poor’s: B+
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Marketing: | Quick to market
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| Dollar-denominated notes
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| Amount: | $475 million
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| Maturity: | May 15, 2027
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| Coupon: | 6 1/8%
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| Price: | Par
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| Yield: | 6 1/8%
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| Spread: | 352 bps
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| Call: | Make-whole call at Treasuries plus 50 bps until May 15, 2022, then callable at 103.063
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| Equity clawback: | 35% at 106.125 until May 15, 2020
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| Price talk: | 6 1/8% to 6 ¼%
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| Sterling-denominated notes
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| Amount: | £250 million
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| Maturity: | Nov. 15, 2024
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| Security description: | Add-on to 6 3/8% senior subordinated notes due Nov. 15, 2024
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| Coupon: | 6 3/8%
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| Price: | 106
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| Yield to worst: | 5.14%
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| Yield to maturity: | 5.407%
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| Spread: | 484 bps
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| Call: | Make-whole call at Gilts plus 50 bps until Nov. 15, 2019, then callable at 104.781
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| Equity clawback: | 35% at 106.375 until to Nov. 15, 2019
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| Price talk: | 105.75 to 106.25
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| Original issue: | £250 million priced at par on Oct. 28, 2016
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| Fungibility: | Add-on notes to become fungible with original notes when acquisition closes
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| Total issue size: | £500 million
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