The world's largest cinema chain AMC Entertainment has secured a new financing commitment to reorganise existing liabilities of its European subsidiary. Together with the New York branch of Deutsche Bank a credit facility of up to USD 425 million was agreed.

The money is to be channelled via the daughter Odeon Cinemas Group which in Europe include the multiplex chain UCI Cinemas operates. It is planned to use the funds primarily to redeem existing senior secured bonds, which bear interest at 12.75 per cent and mature in 2027. The loan will also be used to cover fees and transaction costs.

The planned financing is to be structured as a senior secured loan with a term until 2031. The interest rate is expected to be 10.5 per cent, which is lower than that of the previous bonds. AMC is thus pursuing the goal of strengthening the Odeon Group's balance sheet, extending the terms of the liabilities and reducing the interest burden.

As part of the new loan agreement, the company has also decided not to pursue a previously announced issue of new senior notes.

The closing of the financing is still subject to final loan documents and customary closing conditions. According to AMC, the transaction could be finalised by the beginning of April at the latest.