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Moody's revises AMC outlook after Odeon deal

Moody'srevised its outlook on AMC EntertainmentHoldings Inc. to negative from stable.

The company'sB1 corporate family rating, B1-PD probability of default rating, Ba1 senior securedrating and B2 senior subordinated rating were affirmed.

The ratingsaction follows the company's agreementto acquire London-basedOdeon & UCI Cinemas Group from investment firm Terra Firma Capital PartnersLtd. for about £921 million. The deal's price is composed of £500 million of equity,75% of which will be in cash and 25% in shares; £407 million of net debt as of March31, which will be refinanced at the deal's closing; and £14 million of employeeincentive costs.

The outlookrevision "incorporates a material rise in leverage, substantial exposure tocurrency risk and the potential for weaker pound and euro-based earnings, uncertaintiesstemming from the exit of the UK from the European Union, and elevated transactionexecution and integration risks with the acquisition of two major transactions,simultaneously," Moody's said July 13.

AMC isalso in the process of acquiringCarmike Cinemas Inc.