- AMC Networks (AMCX, Financial) launches tender offer for up to $450 million of its 4.25% Senior Notes due 2029.
- Early tender offer price set at $815 per $1,000 principal, with a $50 premium.
- Tender offer to be financed through a new issuance of senior secured notes due 2032 and available cash.
AMC Networks Inc. (AMCX) has announced the commencement of a tender offer to repurchase up to $450 million in aggregate principal of its outstanding 4.25% Senior Notes due 2029. The company offers $815 per $1,000 principal amount, which includes a $50 early tender premium for notes submitted by the early tender date of July 1, 2025.
For notes tendered after this date but before the expiration on July 17, 2025, holders will receive $765 per $1,000. The tender offer may be subject to proration if submissions exceed the maximum tender amount, with priority given to early tenders.
The offer will be financed through proceeds from a proposed issuance of senior secured notes due 2032 along with cash on hand. AMC Networks is transitioning from unsecured to secured debt structure, indicating a strategic move to refinance its current obligations and extend debt maturities.
The outstanding principal amount of the 2029 Notes stands at $885.9 million, and if the offer is fully subscribed, this could reduce the company's outstanding debt by more than 50%. This move is part of AMC Networks' broader strategy to improve financial metrics and manage liabilities more effectively.
Holders need to act before the early tender date to maximize returns, as tendering after will lead to receiving only the tender offer consideration without the early premium. The company's financial stability remains in focus as it maneuvers through current market conditions.
