AMC launches $1.73 billion notes offering to refinance existing debt

AMC Entertainment Holdings Inc. (NYSE: AMC) announced that its subsidiary Muvico LLC commenced an offering of $1.73 billion in first lien notes due 2031, according to a company statement.

The notes will be guaranteed by AMC and its subsidiaries that guarantee obligations under a new $750 million term loan facility expected to be established alongside the offering. The cinema operator plans to use proceeds from both transactions, along with cash on hand, to redeem $400 million of 12.750% senior secured notes due 2027 issued by subsidiary Odeon Finco PLC, refinance its existing term loan facility, and cover related fees and expenses.

Concurrently, Odeon delivered a conditional redemption notice to holders of the Odeon notes. The redemption requires completion of debt financing transactions generating at least $2.48 billion in gross proceeds to AMC and its subsidiaries, which may include the current offering and new term loan facility.

The notes are being offered to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. The securities have not been registered under the Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption.

AMC operates approximately 855 theaters and 9,640 screens globally, making it what the company describes as the largest movie exhibition company in the United States, Europe and worldwide.

The company cautioned that there are no assurances regarding when or if the debt financing transactions will be completed or conditions satisfied, noting it may waive conditions at its discretion.

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