SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Item 1.01. Entry into a Material Definitive Agreement.
On February 15, 2021, Odeon Cinemas Group Limited (“Odeon”), a wholly-owned subsidiary of AMC Entertainment Holdings, Inc. (the “Company”) entered into a new £140,000,000 and €296,000,000 term loan facility agreement, by and among Odeon, the subsidiaries of Odeon party thereto, the lenders and other loan parties thereto and Lucid Agency Services Limited as agent and Lucid Trustee Services Limited as security agent (the “Term Loan Facility”). Approximately £90,000,000 and €13,000,000 of the net proceeds from the Term Loan Facility will be used to repay in full Odeon’s obligations (including principal, interest, fees and cash collateralised letters of credit) under its existing revolving credit facility (the “Existing Facility”) and the remaining net proceeds will be used for general corporate purposes.
The Term Loan Facility has a maturity of 2.5 years from the date on which it is first drawn. Borrowings under the Term Loan Facility bear interest at a rate equal to 10.75% per annum during the first year and 11.25% thereafter. Odeon will have the ability to elect to pay interest in cash or in PIK interest for each interest period.
All obligations under the Term Loan Facility are guaranteed by certain subsidiaries of Odeon. The Company is also providing a limited recourse guarantee. All obligations under the Term Loan Facility are secured by security over certain classes of assets in England, Sweden, Spain, Finland and Germany and share security in Ireland, the Netherlands and Italy.
The Term Loan Facility contains a number of covenants that are substantially similar to the covenants set forth in the Existing Facility. In addition, the Term Loan Facility contains a minimum liquidity covenant for Odeon and its subsidiaries. The Term Loan Facility also contains certain customary events of default.
The foregoing description of the Term Loan Facility is qualified in its entirety by reference to the Term Loan Facility, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 is incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
|10.1||Term Loan Facility Agreement, dated as of February 15, 2021, by and among Odeon Cinemas Group Limited, the subsidiaries of Odeon Cinemas Group Limited party thereto, the lenders and other loan parties thereto and Lucid Agency Services Limited, as agent and security agent.|
|104||Cover Page Interactive Data File (embedded within the Inline XBRL document).|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
|AMC ENTERTAINMENT HOLDINGS, INC.|
|Date: February 17, 2021||By:||/s/ Sean D. Goodman|
|Name:||Sean D. Goodman|
|Title:||Executive Vice President and Chief Financial Officer|