IPO Watch: AMC Entertainment Debt Filings

AMC Entertainment Inc. is set to be one of our Top 17 IPOs to Watch in 2011.  Now the company has an SEC filing from late-Thursday showing that it has filed three debt offerings for a total of $1.5 billion in maturities coming in 2014, 2019, and 2020.

The rates are not exactly cheap on the surface: 2014 at 8.00%, 2019 at 8.75%, and 2020 at 9.75%.  With the impending IPO we have little doubt about the demand from junk bond buyers even if the “use of proceeds” says that the prospectus was delivered in connection with the sale of the notes by Credit Suisse and J.P. Morgan in market making transactions and also noted that the company will not receive any of the proceeds from these transactions.  The company also has certain redemption dates (effectively callable dates) ahead if it has equity offerings.

As of December 30, 2010, AMC owned, operated or held interests in 361 theatres with a total of 5,203 screens and about 99% of these are located in the United States and Canada.  Its pre-IPO owners include J.P. Morgan Partners, Apollo, Bain Capital and The Carlyle Group.

For the 52 weeks ended December 30, 2010, the fiscal year ended April 1, 2010 and the 39 weeks ended December 30, 2010, it generated revenues on a pro forma basis of about $2.6 billion, $2.7 billion and $1.9 billion, respectively.  For the same periods, its pro forma Adjusted EBITDA of $329.7 million, $365.6 million and $253.2 million, respectively.  Its pro forma earnings from continuing operations in the same period are listed as $93.1 million, $84.8 million and $30.7 million, respectively.

AMC also reported revenues of about $2.4 billion, earnings from continuing operations of $77.3 million and net earnings of $69.8 million in fiscal 2010. For fiscal 2009 and 2008, it reported revenues of about $2.3 billion and $2.3 billion, earnings (losses) from continuing operations of $(90.9) million and $41.6 million, and net earnings (losses) of $(81.2) million and $43.4 million, respectively.

Stay tuned.

JON C. OGG