AMC Networks Gets $600 Million Debt Commitment for Acquisition

AMC Networks Inc., 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.

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