TEXT - S&P says AMC Entertainment ratings unaffected by purchases

Tue Nov 27, 2012 5:31pm EST

Related Topics

Nov 27 - User
                                  00:13:15   ID:022   
 Edit options                                         
                                                      
 Change password                                      
                                                      
 Home page                                            
                                                      
 Log off                                              
                                                      
 Filing                                               
                                                      
 Edit (and add codes)                                 
                                                      
 'Urgents' (Fast Breaks)                              
                                                      
 Chained alerts                                       
                                                      
 Corrections                                          
                                                      
 Admin                                                
                                                      
 Prepared templates                                   
                                                      
 Bureau list                                          
                                                      
 Email                                                
                                                      
 Recipient groups                                     
                                                      
 Permitted sources                                    
                                                      
 Misc                                                 
                                                      
 Company info data quality log                        
                                                      
 'Urgents' overview                                   
                                                      
 Workflow page                                        
                                                      
 View webwire configuration                           
                                                      
 Session response times                               
                                                      
 
                                  
 [no company]                     
 
 S&PBulletin: AMC Entertainment Rtgs Unaffected By Purchases 
 
 
CHICAGO (Standard & Poor's) Nov. 27, 2012--Standard & Poor's Ratings Services 
said today that AMC Entertainment Holdings Inc.'s announcement that it has 
signed an agreement to acquire four theaters with 61 screens from Rave Cinemas 
will not affect our 'B' corporate credit rating or stable rating outlook on 
the company. 

The purchase price of the acquisition was not disclosed, but we believe AMC 
has enough cash to finance the transaction. As of Sept. 27, 2012, the company 
had more than $150 million in cash. The transaction is subject to customary 
closing conditions and regulatory approvals. We expect AMC's credit metrics 
will remain roughly the same, with leverage in the mid-7x area, after assuming 
any lease obligations from the acquisition. Under our base case, we expect 
fully adjusted leverage could rise to the low-8x area over the next year, or 
higher if the company pursues debt-financed dividends or additional 
acquisitions.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.