AMC Networks Gets $600 Million Debt Commitment for Acquisition

AMC Networks Inc. (AMCX), owner of the U.S. cable-TV channel that broadcasts “Breaking Bad” and “Mad Men,” obtained as much as $600 million in financing to support its purchase of Liberty Global Plc’s Chellomedia international unit.

Bank of America Corp. will back the portion of the 750 million-euro ($1.03 billion) purchase price that’s not being funded with cash on hand, the New York-based company said today in a regulatory filing. The acquisition is expected to close in the first quarter of 2014.

“We expect adjusted leverage could rise to the high 4-times area on the day the transaction closes,” Standard & Poor’s analysts Naveen Sarma and Andy Liu wrote in an Oct. 28 report. “This leverage figure includes the debt to finance the transaction.”

S&P said it expects adjusted leverage at year end to be about four times.

AMC has about $2.18 billion of debt outstanding, according to data compiled by Bloomberg. Borrowings include an $880 million term loan that expires in June 2017, $700 million of 7.75 percent notes that mature in July 2021 and $600 million of 4.75 percent obligations due in December 2022, according to an Aug. 8 regulatory filing.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.