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
Leawood, Kansas (September 14, 2017) – 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., inEurope 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