AMC Networks said Thursday it will issue about $700 million in debt in connection with its planned spin-off from Cablevision Systems.
AMC Networks said it will issue $700 million in senior notes due in 2021. Following the spin, slated for June 30, AMC Networks will consist of AMC, WE tv, IFC, Sundance Channel and IFC Films. The company will also operate AMC/Sundance Channel Global, an international programming business, and AMC Networks Broadcasting & Technology, a full-service network programming feed origination and distribution company.
Separately, AMC stock began trading on Nasdaq on a when-issued basis on Thursday, opening officially at $31.15 per share and closing at $35.49 each, up 14%.
When-issued shares can be bought or sold like ordinary securities, except that transactions do not settle until the stock is formally issued. The attraction: trading in when-issued shares usually require a small down payment of about 25% of the value of the shares and no margin or loan debt is needed for the balance until the settlement date, which can be weeks in the future.
The stock is expected to begin regular trading on the Nasdaq on July 1 under the symbol "AMCX."
