AMC European Subsidiary Looks To Raise $400 Million Via Senior Secured Notes

AMC Entertainment (NYSE: AMC, APE) this morning revealed that a subsidiary is looking to raise funds privately as a means of settling certain outstanding term loans. The debt is to be guaranteed by the firms Odeon Cinemas Group Limited subsidiary on a senior secured basis, while they will also be unsecured by AMC on a standalone basis.

The funds to be raised in an entity known as Odeon Finco, a subsidiary of Odeon Cinemas Group, and an indirect subsidiary of AMC. In total, $400.0 million of senior secured notes due 2027 are to be sold, the proceeds of which will be used to fund the repayment in full of existing term loan facilities held by Odeon Cinemas.

The offering is being made available to accredited investors only within the European Economic Area, as well as residents of the United Kingdom. US investors are not eligible to invest in the notes, nor are retail investors.

READ: AMC Entertainment Looks To Issue 425 Million APE Shares Under At-The-Market Offering

Odeon Cinemas was originally acquired by AMC Entertainment in 2016, with the company at the time paying $1.2 billion to private equity firm Terra Firma. With 244 theatres and 2,243 screens at the time of acquisition, it was the largest theatre operator in Europe, and the purchase made AMC the largest theatre operator globally.

AMC Entertainment last traded at $6.12 on the NYSE via its AMC shares.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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