AMC Entertainment Inc. has closed its private debt offering of $375 million worth of senior subordinated notes one week after its initial opening, the company announced in a press release. Investors bought the notes for 100 percent of the principal amount and at an interest rate of 5.875 percent per annum.
The company reported that it combined net proceeds from the private offering with net proceeds from the public offering of its parent company, AMC Entertainment Holdings Inc, and used the money to makes payments for its tender offer to purchase $600 million of the company’s senior notes due in 2019. The 2019 senior notes carry 8.75 percent interest.
Craig Ramsey, Chief Financial Officer of AMC Entertainment Holdings, Inc. said in a press release that the private sale of the senior subordinated notes would provide the company with “significant interest expense savings in the coming years and further enhances our coverage and leverage ratios while significantly improving our overall debt maturity profile.”