AMC Networks eyes record decline on planned convertible debt deal

AMC Global Media

17/06/2024 15:31

(Updates stock activity, adds price talk, changes headline)
    ** Shares of AMC Networks  AMCX.O  tumble 28.1% to $11.30
early Mon as co plans capital raise
    ** AMCX on track for record daily pct drop, hits lowest
level since early May
    ** Cable television and film entertainment co early Mon
announced private offering of $125 mln convertible bonds (CBs)
due 2029
    ** It intends to use net proceeds for general purposes,
including debt repayment
    ** Jt bookrunners BofA, JPM and Citi marketing CBs with
3.75%-4.25% coupon, 22.5%-27.5% convertible premium, according
to IFR
    ** Co has about $500 mln current market cap, per LSEG data
    ** With move on the session, AMCX down ~40% YTD vs Nasdaq's
 .IXIC  ~18% advance
    ** Half of 8 analysts covering the stock rate it "hold",
rest "sell" with $12 median PT

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))