AMC Entertainment has launched a broad debt refinancing involving $2 billion of new first-lien notes, an $850 million first-lien term loan and a $1.12 billion second-lien term loan facility.
Together, the planned financings represent approximately $3.97 billion of new debt capacity, subject to market conditions and other closing requirements.
AMC has begun a private offering of $2 billion in first-lien notes due 2031 and launched syndication of the $850 million first-lien term loan.
The theater operator also entered into a commitment letter with Deutsche Bank AG New York Branch for the $1.12 billion second-lien term loan.
AMC plans to combine proceeds from the financings with cash on hand to refinance several existing debt obligations.
The company intends to fund a tender offer for its outstanding 7.5% Senior Secured Notes due 2029 and redeem any of those notes remaining after the tender process.
AMC also plans to redeem the full $903.4 million principal amount of Muvico’s Senior Secured Notes due 2029.
Additional proceeds would repay AMC’s existing term loan facility and the existing term loan of Odeon Finco, a subsidiary of Odeon Cinemas Group.
The new notes and loan facilities will be secured by guarantees from certain existing and future wholly owned subsidiaries, including Muvico, Odeon Cinemas Group and certain Odeon subsidiaries.
AMC expects redemption of the Muvico notes to be conditioned on completing the new financings or other debt transactions producing at least $3.97 billion in aggregate gross proceeds.
The refinancing is aimed at addressing multiple existing debt maturities through a new capital structure extending into 2031.
The offering and loan transactions remain subject to market and other conditions and had not been completed at the time of the announcement.
