AMC Networks Announces Final Results of Modified Dutch Auction Tender Offer

Rhea-AI Summary

AMC Networks has completed its modified Dutch auction tender offer, purchasing 10,802,550 shares of its Class A common stock at $23.20 per share, totaling approximately $250.6 million. This repurchase represents about 26.6% of the Class A Shares outstanding as of October 13, 2020. All properly tendered shares were accepted, and the payment will be made using available cash. BofA Securities and Citigroup acted as joint dealer managers for the offer, with D.F. King serving as the information agent.

Positive

• Successfully repurchased 10,802,550 Class A Shares, indicating strong capital management.
• Repurchase represents 26.6% of outstanding Class A Shares, enhancing shareholder value.

Negative

• None.

NEW YORK, Oct. 21, 2020 (GLOBE NEWSWIRE) -- AMC Networks Inc. (“AMC Networks” or the “Company”) (NASDAQ: AMCX) today announced the final results of its modified Dutch auction tender offer, which expired at 12:00 midnight, New York City time, on October 14, 2020.

Based on the final count by Equiniti Trust Company, the depositary for the tender offer (the “Depositary”), AMC Networks has accepted for purchase 10,802,550 shares of its Class A common stock, par value $0.01 per share (the “Class A Shares”), at a price of $23.20 per Class A Share, for an aggregate cost of $250,619,160, excluding fees and expenses relating to the tender offer. The repurchased Class A Shares represent approximately 26.6 percent of the Class A Shares issued and outstanding as of October 13, 2020. Included in the 10,802,550 Class A Shares AMC Networks accepted for purchase in the tender offer are 26,688 Class A Shares that AMC Networks elected to purchase pursuant to its right to purchase up to an additional 2% of its outstanding Class A Shares. As AMC Networks accepted for purchase all the Class A Shares that were properly tendered and not properly withdrawn at a price at or below $23.20, there is no proration factor. The Company will pay for the Class A Share repurchases with available cash. The Depositary will promptly pay for all Class A Shares accepted for payment pursuant to the tender offer, and will return all Class A Shares tendered and not purchased in the tender offer.

BofA Securities, Inc. and Citigroup Global Markets Inc. acted as joint dealer managers for the tender offer, D.F. King & Co., Inc. acted as information agent for the tender offer and Equiniti Trust Company acted as the depositary for the tender offer. Stockholders who have questions or would like additional information about the tender offer may contact the information agent, D.F. King & Co., Inc., toll-free at (877) 478-5043; banks and brokers may call D.F. King at (212) 269-5550 or the joint dealer managers, BofA Securities, Inc. and Citigroup Global Markets Inc. at (888) 803-9655 and (877) 531-8365, respectively.

About AMC Networks Inc.
AMC Networks is a global entertainment company known for delivering high-quality content to audiences and a valuable platform to distributors and advertisers. The Company, which operates several of the most recognizable brands in entertainment, manages its business through two operating segments: (i) National Networks, which principally includes AMC, BBC AMERICA, IFC, SundanceTV and WE tv; and AMC Studios, the Company’s television production business; and (ii) International and Other, which principally includes AMC Networks International, the Company’s international programming business; AMC Networks SVOD, the Company’s targeted subscription streaming services, Acorn TV, Shudder, Sundance Now and UMC (Urban Movie Channel); Levity Entertainment Group, the Company’s production services and comedy venues business; and IFC Films, the Company’s independent film distribution business. For more information on AMC Networks, please visit the Company’s website at www.amcnetworks.com.

Forward Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.

Contacts:

Investor Relations Seth Zaslow (646) 273-3766 seth.zaslow@amcnetworks.com

Corporate Communications Georgia Juvelis (917) 542-6390 Georgia.juvelis@amcnetworks.com

FAQ

What was AMC Networks' tender offer price for Class A shares?

AMC Networks set the tender offer price for Class A shares at $23.20.

How many shares did AMC Networks buy back in the tender offer?

AMC Networks repurchased 10,802,550 shares in the tender offer.

What percentage of the outstanding Class A shares did AMC purchase?

AMC purchased approximately 26.6% of the Class A shares outstanding.

What was the total cost of the AMC Networks tender offer?

The total cost of the tender offer was approximately $250.6 million.

Who managed the tender offer for AMC Networks?

BofA Securities and Citigroup were the joint dealer managers for the tender offer.