NEW YORK Sundance Channel owner AMC Networks Inc (AMCX.O) is in market with a $1.98 billion pro rata credit facility that backs its acquisition of Chellomedia, sources told Thomson Reuters LPC. Bank of America Merrill Lynch is leading the deal.
The facility comprises a $500 million, five year revolver and a $1.48 billion, six-year amortizing term loan A.
The revolver and term loan will come due in 2018 and 2019, respectively. Drawn pricing opens at LIB+200. The revolver pays a 37.5bp commitment fee.
Proceeds will back the acquisition of Chellomedia from Liberty Global and refinance $880 million in term loan A borrowings due 2017. The company expects to leave $600 million unfunded under the term loan until the transaction closes.
The acquisition is expected to close in the first quarter of 2014.
Commitments are due November 26. Closing of the financing is anticipated the second week of December.
The company did not respond by press time. BAML could not be reached by press time.
As previously reported, on October 28, AMC announced its plans to acquire Chellomedia for 750 million euros ($1.035 billion). Chellomedia is Liberty Global's international content division.
At June 30, AMC's long term debt consisted of an $880 million term loan A, $700 million 7.75 percent notes due 2021, and $600 million 4.75 percent notes due 2022. The company also has a $500 million revolver that was undrawn as of June 30, according to a company filing.
AMC Networks Inc owns and operates cable television brands including AMC, IFC, Sundance Channel, WE tv and IFC Films.
(Editing By Jon Methven)