AMC Networks Inc. Announces Pricing of Private Offering of $400 Million of 10.50% Senior Secured Notes due 2032

Rhea-AI Summary

AMC Networks announced the pricing of $400 million in senior secured notes due 2032 with a 10.50% interest rate. The notes will be guaranteed by AMC's existing and future domestic subsidiaries on a senior secured basis. The company plans to use the proceeds, along with available cash, to fund a tender offer for up to $450 million of its outstanding 4.25% Senior Notes due 2029, pay related fees and expenses, and repurchase other corporate debt. The offering is being made to qualified institutional buyers under Rule 144A and to non-US persons under Regulation S, with the notes not being registered under the Securities Act.

Positive

• Successful pricing of $400 million senior secured notes indicates market confidence
• Strategic debt refinancing could improve the company's debt maturity profile
• Notes are secured and guaranteed by domestic subsidiaries, providing additional investor protection

Negative

• High interest rate of 10.50% indicates significant borrowing costs
• Replacing 4.25% notes with 10.50% notes suggests higher debt servicing expenses
• Increased interest expenses could impact future cash flows and profitability

Insights

Corporate Finance Specialist

AMC Networks restructuring $400M in debt at high 10.50% interest rate signals financial pressure amid rising borrowing costs.

AMC Networks has priced a $400 million offering of senior secured notes at a 10.50% interest rate maturing in 2032. This high interest rate is particularly noteworthy as it reflects significant borrowing costs in today's market environment. The company intends to use these funds primarily to purchase up to $450 million of its outstanding 4.25% Senior Notes due 2029.

This refinancing represents a substantial increase in interest expense for AMC Networks. The company is effectively exchanging lower-interest debt (4.25%) for significantly higher-interest debt (10.50%), which will increase annual interest expenses by approximately $25 million. This suggests AMC Networks may be facing pressure to restructure its debt profile despite the higher costs involved.

The secured nature of these new notes is also significant - they're backed by guarantees from AMC's domestic subsidiaries and likely by specific company assets, providing more protection to these new creditors compared to unsecured debt. This structure typically indicates lenders requiring additional security to extend financing.

This transaction ultimately extends AMC's debt maturity profile from 2029 to 2032, providing additional financial runway, but at a considerably higher cost. The willingness to accept these terms suggests management may be prioritizing financial flexibility and extended maturities over interest expense optimization.

NEW YORK, June 18, 2025 (GLOBE NEWSWIRE) -- AMC Networks Inc. (“AMC Networks” or the “Company”) (Nasdaq: AMCX) today announced that it has priced an offering of $400 million aggregate principal amount of 10.50% senior secured notes due 2032 (the “Notes”) in a private offering.

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.

AMC Networks expects to use the net proceeds from the offering of the Notes, together with cash on hand or other immediately available funds, to (i) fund its tender offer (the “Tender Offer”) to purchase for cash up to $450,000,000 aggregate principal amount of its outstanding 4.25% Senior Notes due 2029, (ii) pay related premiums, fees and expenses incurred in connection with the offering of the Notes and the Tender Offer, and (iii) repurchase or repay other corporate indebtedness.

AMC Networks is offering the Notes (and the related guarantees) pursuant to an exemption under the Securities Act of 1933, as amended (the “Securities Act”). The initial purchasers of the Notes will 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 Notes have not been and will not be registered under the Securities Act or under any state securities laws. Therefore, the Notes may not be offered or sold within the United States to, or for the account or benefit of, any United States person unless the offer or sale would qualify for a registration exemption from the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell, the solicitation of an offer to buy or a notice of redemption for any securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About AMC Networks
AMC Networks (Nasdaq: AMCX) is home to many of the greatest stories and characters in TV and film and the premier destination for passionate and engaged fan communities around the world. The Company creates and curates celebrated series and films across distinct brands and makes them available to audiences everywhere. Its portfolio includes targeted streaming services AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE; cable networks AMC, BBC AMERICA (which includes U.S. distribution and sales responsibilities for BBC News), IFC, SundanceTV and We TV; and film distribution labels Independent Film Company and RLJE Films. The Company also operates AMC Studios, its in-house studio, production and distribution operation behind acclaimed and fan-favorite original franchises including The Walking Dead Universe and the Anne Rice Immortal Universe; and AMC Networks International, its international programming business.

Forward-Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning the timing, terms and completion of the offering of the Notes, the anticipated use of proceeds from the offering of the Notes and the timing, terms and completion of the Tender Offer. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.

Contacts

Investor Relations Nicholas Seibert nicholas.seibert@amcnetworks.com

Corporate Communications Georgia Juvelis georgia.juvelis@amcnetworks.com

FAQ

What is the interest rate and size of AMC Networks' (AMCX) new senior secured notes?

AMC Networks is offering $400 million in senior secured notes with a 10.50% interest rate, due in 2032.

How will AMC Networks (AMCX) use the proceeds from the new notes offering?

The proceeds will be used to fund a tender offer for up to $450 million of 4.25% Senior Notes due 2029, pay related fees and expenses, and repurchase other corporate debt.

Who can purchase AMC Networks' (AMCX) new senior secured notes?

The notes are only offered to qualified institutional buyers under Rule 144A and non-US persons under Regulation S of the Securities Act.

What is the maturity date of AMC Networks' (AMCX) new senior secured notes?

The new senior secured notes will mature in 2032.

Are AMC Networks' (AMCX) new notes guaranteed?

Yes, the notes are unconditionally guaranteed by AMC Networks' existing and future domestic subsidiaries on a senior secured basis.