AMC Entertainment's $650 million term loan broke at 100 3/4 and traded up into the 101 101 1/4 context. Citigroup leads the deal, which also includes a $200 million revolving credit facility. The term loan is priced at LIBOR plus 2 1/8%, while the revolver is priced at LIBOR plus 1 3/4%. Original price talk on the term loan was LIBOR plus 2 1/2% (CIN 1/9).
The deal backs the merger of AMC Theaters and Loews Cineplex, which was completed Jan. 26. Last week, AMC announced its intention to offer $325 million of senior subordinated notes in a private placement. Standard & Poor's affirmed its B corporate credit rating on AMC Entertainment, and its parent, Marquee Holdings. The outlook for AMC and Marquee is negative. According the rating agency, AMC had $2.5 billion in debt after the merger. The ratings reflect the company's high leverage, weak profit margins and its participation in the highly competitive movie theater industry. S&P assigned a B+ rating to the term loan and Moody's Investors Service rated it Ba3. Calls to Craig Ramsey, cfo, were not returned.