AMC Networks Inc. has announced its intention to offer $700 million aggregate principal amount of senior secured notes due 2029 in a private offering. The company expects to use the net proceeds from the offering, as well as cash on hand or other immediately available funds, to fund its tender offer to purchase for cash any and all of its outstanding approximately $775 million of 4.75% senior notes due 2025 and to redeem any 2025 notes that remain outstanding after completion of the tender offer.
The notes will be unconditionally guaranteed, on a joint and several basis, by each of AMC Networks’ existing and future domestic subsidiaries, subject to certain exceptions, on a senior secured basis. The company is offering the notes pursuant to an exemption under the Securities Act of 1933.
AMC Networks intends to offer the notes only to persons reasonably believed to be qualified institutional buyers in reliance on rule 144a under the Securities Act or outside the United States to certain persons in reliance on regulation s under the Securities Act.
The company also provided an update about its financial situation, revealing that it currently has approximately $775 million of 4.75% senior notes due 2025 outstanding. AMC Networks did not disclose the interest rate or any other specific details about the new notes being offered.
AMC Networks is a home to many celebrated series and films across distinct brands and makes them available to audiences everywhere. Its portfolio includes targeted streaming services such as AMC+, Acorn TV, Shudder, Sundance Now, Allblk, and HiDive, cable networks like AMC, BBC America, IFC, SundanceTV, and WE tv, and film distribution labels IFC Films and RLJE Films. The company also operates AMC Studios and AMC Networks International. Today the company's shares have moved 0.3% to a price of $11.67. For more information, read the company's full 8-K submission here.
