Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers A > Headlines for AMC Entertainment Holdings Inc. > News item |
Fitch affirms AMC Entertainment
Fitch Ratings said it affirmed the long-term issuer default rating of B on AMC Entertainment Holdings, Inc.
The outlook is stable.
The affirmation follows AMC's announcement that it has closed on a $600 million strategic investment from private equity firm Silver Lake in the form of 2.95% convertible senior unsecured notes, the agency said.
Fitch said it views the transaction as a credit negative.
Management's aggressive financial policy is evidenced by its tolerance to increase leverage to fund the repurchase of 24 million class B common shares from Dalian Wanda Group Co., Ltd. and a $160 million special dividend to shareholders, the agency added.
“Notably, the incremental cash interest from the new convertible notes ($18 million) will be offset by reduced cash dividend payments to Wanda resulting from the share repurchase. As such, the impact to FCF will be neutral,” Fitch said in a news release.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.