AMC Entertainment Inc., owner of the second-largest U.S. movie-theater chain, is seeking $300 million in term loans to fund a tender offer and to repay outstanding debt.
The new loans will mature in 2018, the Kansas City, Missouri-based company said today in a regulatory filing.
AMC plans to commence a cash tender offer to purchase as much as $160 million of its outstanding $300 million 8 percent senior subordinated notes due 2014, according to the filing.
Moody’s Investors Service rated the proposed term loan Ba2, saying in a report today that “the transaction favorably extends the maturity profile and could result in a modest reduction in interest expense.”
AMC has leverage, or debt to earnings before interest, taxes, depreciation and amortization, of 8 times, Moody’s said.
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