Apollo also receives 36.9% in voting control.
AMC officials have indicated that the money infusion would be used to pay down debt and to retain a full line of credit if needed for future purchases. Currently, AMC has about $425 million in revolving credit.
AMC has been one of the few national theater exhibition companies to aggressively open megaplexes while simultaneously closing its smaller, under-performing screens. The company opened its first megaplex in Dallas in 1995 and since that year, has closed more than 800 of its other screens.
"The investment in AMC exemplifies our philosophy of investing in franchise assets--a company with a skilled management team, a highly respected product, a strong brand and leading market share," says senior Apollo partner Leon Black.
At the end of three years, this deal gives Apollo 65% ownership and 42% in voting stake. Also as a part of the deal, the AMC board of directors has now expanded from five to eight. The three new seats are filled by Black and fellow senior Apollo partners Laurence M. Berg and Marc J. Rowan.
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