AMC Entertainment Holdings, Inc. Completes Sale Leaseback of 7 U.S. Theatres for $130 Million
September 14 2017 - 6:45AM
Business Wire
Generates approximately $128 million of cash
after closing costs; creates a deferred gain of approximately $80
million, amortized over the life of the leases
Consistent with previous AMC announcement to
monetize up to $400 million in assets
AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the
Company”) announced today it has completed a $130 million
transaction with an unidentified American buyer to sell and
simultaneously lease back seven theatre properties in New York, New
Jersey and Indiana, an arrangement commonly referred to as a sale
leaseback agreement. This is consistent with its previously
announced plan to identify approximately $400 million of assets, in
which AMC’s ownership was not essential, and that could be
monetized over the next twenty-four months.
The sale will generate approximately $128 million in cash after
closing costs and will create a deferred gain on sale of
approximately $80 million that will be amortized throughout the
long-term leases, under current accounting standards.
Commenting on the transaction, AMC CEO and President Adam Aron
said: “AMC’s $130 million sale leaseback transaction is the second
action step we have consummated since the announcement last month
to realize monies from assets which were not vital for us to
own. Combined with the sale of our 50% interest in Open Road
Films, which was sold last month with an $18 million pre-tax gain,
AMC has generated more than $140 million of cash. This is
beneficial in enabling AMC to pursue our plan to strengthen our
balance sheet even as we pursue dynamic growth.”
Aron continued, “In August, AMC announced that we had identified
some $400 million in assets that could be painlessly sold to
enhance our overall liquidity position, as well as assist in
funding the buying back of AMC shares, paying down of our debt and
fueling the growth of AMC through deployment of our proven
strategic initiatives.”
About AMC Entertainment Holdings, Inc.
AMC (NYSE: AMC) is the largest movie exhibition company in the
U.S., in Europe and throughout the world with approximately 1,000
theatres and 11,000 screens across the globe. AMC has propelled
innovation in the exhibition industry by: deploying more plush
power-recliner seats; delivering enhanced food and beverage
choices; generating greater guest engagement through its loyalty
program, web site and smart phone apps; offering premium large
format experiences and playing a wide variety of content including
the latest Hollywood releases and independent programming. AMC
operates among the most productive theatres in the United States’
top markets, having the #1 or #2 market share positions in 22 of
the 25 largest metropolitan areas of the United States, including
the top three markets (NY, LA, Chicago). Through its Odeon
subsidiary AMC operates in 14 European countries and is the # 1
theatre chain in Estonia, Finland, Italy, Latvia, Lithuania, Spain,
Sweden and UK & Ireland. For more information, go to
www.amctheatres.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170914005468/en/
AMC Entertainment Holdings, Inc.INVESTOR RELATIONS:John
Merriwether, 866-248-3872InvestorRelations@amctheatres.comorMEDIA
CONTACTS:Ryan Noonan, 913-213-2183rnoonan@amctheatres.com
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