AMC Networks Nabs 95% Tender for 10.25% Notes, Unlocks $50M Equity Buybacks
AMC Networks received valid tenders for approximately $830.6 million (95%) of its 10.25% Senior Secured Notes due 2029 and consents for an amendment. The amendment to permit up to $50 million in equity buybacks will become operative upon settlement, with early settlement expected on March 13.
1. Exchange Offer Results
AMC Networks announced that by the early tender deadline, holders of $830.6 million, representing 95% of its 10.25% Senior Secured Notes due 2029, had validly tendered and delivered consents. An additional $9.9 million was delivered as consents without tendering under the Consent Only Option.
2. Indenture Amendment Details
The Company and its guarantors will execute a Supplemental Indenture on March 9 to amend the covenant limiting restricted payments under the Old Notes Indenture. The amendment will allow up to $50 million in equity buybacks, redemptions or other acquisitions, effective upon settlement of the tendered Old Notes.
3. Settlement Timeline and Consideration
Early Settlement is scheduled for March 13 for tenders made by the Early Tender Time, with exchange consideration of $1,065 of New Notes per $1,000 principal of Old Notes. Tenders after the early deadline through March 23 will receive $1,015, with Final Settlement expected on March 25.