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