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TEXT - S&P says AMC Entertainment ratings unaffected by purchases
November 27, 2012 / 10:34 PM / 5 years ago

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

Nov 27 - User
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 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 

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