S&P rates AMC loan, notes BB

S&P said it assigned BB issue-level and 1 recovery ratings to AMC Network Inc.'s planned secured debt, which comprises a $325 million first-lien term loan A due 2028 and a $700 million senior secured note due 2029. The company is also lowering the availability of its first-lien revolving credit facility to $175 million from $400 million and extending the maturity to 2028 from 2026. The agency affirmed the BB ratings on the revolver and the first-lien term loan due 2026. The recovery rating on this debt remains 1.

Concurrently, S&P lowered the issue-level rating on the company's unsecured debt to B from B+ and revised the recovery rating to 5 from 4.

AMC intends to use the proceeds, together with about $280 million of balance sheet cash to repay $508 million of the term loan A due 2026, which has $608 million outstanding, $775 million of the senior notes due 2025, and general corporate purposes including fees and expenses associated with the transaction.

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