AMC’s four most recent acquisitions were
completed and fully funded by AMC from its own resources in 2015,
2016 and early 2017
AMC does not rely upon and is not expecting to
receive any future financing from Dalian Wanda
There are no inter-company loans between AMC
and Dalian Wanda
AMC Entertainment Holdings, Inc. (“AMC” or “the Company”)
(NYSE:AMC), the largest theatrical exhibition company in the U.S.,
in Europe, and in the world, commented as follows in response to
recent speculative media reports that contained some erroneous
information regarding AMC, with the aim of adding clarity and
factually accurate detail:
Dalian Wanda has
never been a source of acquisition funding for AMC. AMC
has completed four circuit-wide acquisitions and bought numerous
individual theatres since being purchased in 2012 by Dalian Wanda
Group Co. Ltd. (“Wanda”), including most recently Starplex Cinemas
(“Starplex”) in 2015, ODEON & UCI Cinemas Holdings, Ltd.
(“ODEON”) in 2016, Carmike Cinemas, Inc. (“Carmike”) also in 2016
and Nordic Cinema Group Holding AB (“Nordic”) in 2017. At no time
was Wanda ever a source of funding for any of these acquisitions or
individual theatre purchases. Additional information on the
individual acquisitions is provided below.
Mainland China-based
banks have never been a source of any funding for AMC.
AMC has never received committed financing from any bank
headquartered in mainland China for any purpose, including for
acquisitions. All committed debt financing for AMC’s three most
recent acquisitions were funded by a syndicate of U.S.-based banks
with AMC as the borrower without financial guarantees or credit
enhancements from Wanda. The fourth acquisition was funded by AMC’s
available cash on hand.
Intercompany
transactions between AMC and Wanda are de minimis. As
previously disclosed on March 10, 2017, on Form 10-K, Wanda
routinely reimburses AMC for general administrative and other
expense in what are typically immaterial amounts incurred on behalf
of Wanda. Total reimbursements of expenses received in the calendar
years 2016, 2015 and 2014 respectively from Wanda were $461,000,
$738,000 and $1,423,000. Total reimbursements of expenses from
Wanda for the twelve-months ending December 31, 2017, are expected
to be less than $600,000. Also previously disclosed in the 2016
10-K was Wanda’s capital contribution of $10 million to AMC
received during February 2017 (without any increase in Wanda’s
economic interest or voting rights in the Company) for one-time
payments to certain officer, directors, and other personnel for
extraordinary services rendered in connection with merger and
acquisition activity in 2016.
Wanda has no special
claim to monies generated through AMC’s operations. The
only current vehicle for making payments by AMC to Wanda is through
the issuance of dividends, which are offered equally on a per share
basis to all AMC shareholders. However, AMC does make normal film
rental payments some of which indirectly go to Legendary
Entertainment, a Wanda affiliate, in conjunction with AMC’s showing
films made by Legendary Entertainment and distributed by other
studios, on what AMC believes to be arms-length market terms.
Starplex:
As previously announced on December 16, 2015, AMC completed its
acquisition of Starplex Cinemas. The acquisition was completely
funded on December 16, 2015, with AMC’s cash-on-hand. AMC did not
receive any financing, guarantees, or credit enhancements from
Wanda in conjunction with the acquisition of Starplex. The
transaction was approved by the U.S. Department of Justice.
ODEON: As
previously announced on November 30, 2016, AMC completed its
acquisition of London-based ODEON & UCI Cinemas Holdings Ltd.
from private equity firm Terra Firma. The acquisition was
completely funded on November 30, 2016, through a combination of
AMC’s cash-on-hand, corporate borrowings, and shares of AMC common
stock. AMC did not receive any financing, guarantees, or credit
enhancements from Wanda in conjunction with the acquisition of
ODEON, and all debt was incurred by AMC. The transaction was
approved by the European Commission.
Carmike:
As previously announced on December 21, 2016, AMC completed its
acquisition of Carmike Cinemas, Inc. The acquisition was completely
funded on December 21, 2016, through a combination of AMC’s
cash-on-hand, corporate borrowings, and shares of AMC common stock.
AMC did not receive any financing, guarantees, or credit
enhancements from Wanda in conjunction with the acquisition of
Carmike, and all debt was incurred by AMC. The transaction was
approved by the U.S. Department of Justice.
Nordic:
As previously announced on March 28, 2017, AMC completed its
acquisition of Stockholm-based Nordic Cinema Group Holding AB from
European private equity firm Bridgepoint and Swedish media group
Bonnier Holding. The acquisition was completely funded on March 28,
2017, through a combination of AMC’s cash-on-hand and corporate
borrowings. AMC did not receive any financing, guarantees, or
credit enhancements from Wanda in conjunction with the acquisition
of Nordic, and all debt was incurred by AMC. The transaction was
approved by the European Commission.
AMC Comment:
“AMC is an American company run from its Leawood, Kansas,
headquarters by our management teams located in the U.S. and
Europe,” said Adam Aron, AMC Chief Executive Officer and President.
“Our shares are publicly traded on the New York Stock Exchange and
our shareholder roster includes some of the biggest U.S.-based
institutional investors, as well as Dalian Wanda, which owns a
majority of our shares. Wanda has been a terrific shareholder, and
we are grateful for Wanda’s support of AMC’s efforts over the past
few years to grow our business, to increase our profitability, to
sustain some 45,000 U.S. and European jobs for AMC employees, and
to improve the movie going experience for our more than 350 million
U.S. and European guests each year. Wanda does not actively
participate in the day-to-day running of AMC beyond the Board of
Directors service of three Wanda executives side-by-side with six
American directors on the AMC Board. Accordingly, recent press
reports notwithstanding, we greatly look forward to Wanda’s
continued support as an AMC shareholder.”
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the U.S., in
Europe, 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
the UK & Ireland, Italy, Spain, Sweden, Finland, and the Baltic
States. www.amctheatres.com
Website Information
This press release, along with other news about AMC, is
available at www.amctheatres.com. We routinely post information
that may be important to investors in the Investor Relations
section of our website, www.investor.amctheatres.com. We use this
website as a means of disclosing material, non-public information
and for complying with our disclosure obligations under Regulation
FD, and we encourage investors to consult that section of our
website regularly for important information about AMC. The
information contained on, or that may be accessed through, our
website is not incorporated by reference into, and is not a part
of, this document. Investors interested in automatically receiving
news and information when posted to our website can also visit
www.investor.amctheatres.com to sign up for E-mail Alerts.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170718005826/en/
AMC Entertainment Holdings, Inc.INVESTOR RELATIONS:John
Merriwether,
866-248-3872InvestorRelations@amctheatres.comorMEDIA
CONTACTS:Ryan Noonan, 913-213-2183rnoonan@amctheatres.com
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