AMC Networks, the former Rainbow Media, is now separate from former parent Cablevision. The new company’s shares began trading Friday (7/1) on Nasdaq as “AMCX.”
Completion of the spin-off gave the new company control of several well known entertainment brands, including AMC, IFC, Sundance Channel and WE tv.
As part of the spin-off, on June 30, 2011, AMC Networks completed its previously announced financing for approximately $2.43 billion of new funded debt. This financing included a private offering of $700 million in aggregate principal amount of 7.75% Senior Notes due 2021. It also included a credit agreement consisting of a $1.13 billion Term Loan A Facility, a $595 million Term Loan B Facility, and a $500 million revolving credit facility, which had not been drawn on at closing. A portion of the financing proceeds was used to repay outstanding debt of subsidiaries of AMC Networks, prior to the closing.
Cablevision Class A stockholders received one share of AMC Networks Class A common stock for every four shares of Cablevision Class A common stock they held.
There was an inauspicious start to the stock trading for the new company. AMC’s shares had already been trading on a “when issued” basis and the price dropped more than 8% when the trading as AMCX officially began on Friday.