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NEW YORK - AMC Networks Inc. (NASDAQ:AMCX), currently trading below its InvestingPro Fair Value with a market capitalization of $276 million, announced Wednesday it has increased the maximum amount of its cash tender offer for outstanding 4.25% Senior Notes due 2029 from $450 million to $600 million.
The company reported that $614.4 million in aggregate principal amount of notes were tendered by the July 1 early tender deadline. Due to the offer being oversubscribed, AMC Networks will accept tendered notes subject to a 97.7% proration factor. The debt management initiative comes as the company maintains a solid current ratio of 2.26, with InvestingPro data showing liquid assets exceeding short-term obligations.
Holders of accepted notes will receive $815 per $1,000 principal amount, which includes an early tender premium of $50 per $1,000. Payment for accepted notes is expected on July 3, 2025.
Because the tender offer was oversubscribed at the early tender deadline, AMC Networks does not expect to accept any notes tendered after this date, despite the offer officially remaining open until July 17.
The company stated that the tender offer is being funded through a combination of proceeds from its concurrent offering of $400 million in senior secured notes due 2032 and cash on hand. For deeper insights into AMC Networks’ financial health and detailed valuation metrics, investors can access comprehensive analysis through the InvestingPro Research Report, part of the platform’s coverage of over 1,400 US stocks.
The withdrawal deadline for the tender offer expired on July 1, meaning tendered notes may no longer be withdrawn except in limited circumstances required by law.
BofA Securities is serving as lead dealer manager for the tender offer, with J.P. Morgan acting as co-dealer manager.
This information is based on a press release statement from AMC Networks.
In other recent news, AMC Networks Inc. reported its financial results for the first quarter of 2025, revealing a significant miss on earnings and revenue forecasts. The company reported revenue of $555 million, a 7% decline year-over-year, and earnings per share of $0.52, falling short of the expected $0.79. Despite these challenges, AMC Networks maintains a revenue outlook of approximately $2.3 billion for 2025. In another development, AMC Networks priced an offering of $400 million in 10.50% senior secured notes due 2032. The proceeds are intended to fund a tender offer for up to $450 million of its outstanding 4.25% Senior Notes due 2029 and to manage other corporate debt. Moody’s Ratings recently downgraded AMC Networks’ corporate family rating to B3 from B2, citing ongoing operational challenges and declining linear subscriber trends. Additionally, AMC Networks has changed its corporate domicile from Delaware to Nevada, a move approved by stockholders during the annual meeting. This transition did not affect the company’s business operations or management.
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