AMC Entertainment Inc. (“AMC” or the “Company”) announced today that it
priced its previously announced private offering of $375.0 million
aggregate principal amount (increased from $325.0 million) of senior
subordinated notes due 2022 (the “Notes”). The Notes will be sold to
investors at a price of 100.000% of the principal amount thereof and
will bear interest at a rate equal to 5.875% per annum. The closing of
the private offering is expected to occur on February 7, 2014, subject
to customary closing conditions.
The Company intends to use the net proceeds from this private offering,
together with a portion of the net proceeds from the initial public
offering of the Company’s parent, AMC Entertainment Holdings, Inc., to
pay the consideration and any consent payments for the tender offer (the
“Tender Offer”) to purchase all of the Company’s outstanding $600.0
million aggregate principal amount of 8.75% Senior Notes due 2019 (the
“2019 Notes”) and consent solicitation (the “Consent Solicitation”)
previously announced by the Company on January 15, 2014. Pursuant to the
Tender Offer and Consent Solicitation, the initial payment of the total
consideration of $1,068.75 per $1,000.00 in principal amount of the 2019
Notes validly tendered prior to the consent payment deadline of January
29, 2014, at 5:00 p.m. New York City time, and not validly withdrawn, is
expected to be made on February 7, 2014. Holders whose 2019 Notes are
purchased in the Tender Offer will also be paid accrued and unpaid
interest from the most recent interest payment date on the 2019 Notes
to, but not including, the payment date.
The Notes will be sold only to qualified institutional buyers in
reliance on Rule 144A under the Securities Act, and outside the United
States only to non-U.S. persons pursuant to Regulation S. The Notes will
not be registered under the Securities Act or any state securities laws
and, unless so registered, may not be offered or sold in the United
States absent an effective registration statement or an applicable
exemption from registration requirements or a transaction not subject to
the registration requirements of the Securities Act or any state
securities laws. This press release does not constitute an offer to sell
or a solicitation of an offer to buy any of the Notes, nor does it
constitute an offer, solicitation or sale in any jurisdiction in which
such offer, solicitation or sale is unlawful.
About AMC Entertainment Inc.
AMC Theatres® delivers distinctive and affordable movie-going
experiences at 343 theatres and 4,950 screens primarily in the United
States. AMC has propelled a history of industry innovation and continues
today by delivering comfort and convenience, enhanced food and beverage,
guest engagement and loyalty, premium sight and sound and targeted
programming to audiences in its theatres across the United States.
Forward-Looking Statements
This press release includes “forward looking statements” within the
meaning of the “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995. Forward-looking statements may
be identified by the use of words such as “forecast”, “estimate”,
“project”, “intend”, “expect”, “should”, “believe” and other similar
expressions that predict or indicate future events or trends or that are
not statements of historical matters. These forward looking statements
include any statements regarding the Company’s strategic and operational
plans. Forward looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or results
will be achieved. Forward looking statements are based on information
available at the time those statements are made and/or management’s good
faith belief as of that time with respect to future events, and are
subject to risks and uncertainties that could cause actual performance
or results to differ materially from those expressed in or suggested by
the forward looking statements. The Company does not intend, and
undertakes no duty, to update this information to reflect future events
or circumstances.
Copyright Business Wire 2014