AMC TO SELL THEATERS; CHAIN WILL LEASE FROM PUBLIC TRUST.Byline: Dave McNary McNary may refer to:
AMC (Advanced Mezzanine Card) See AdvancedTCA. Entertainment plans to sell a dozen of its biggest theaters, including the Promenade promenade
Public place where people walk (or, in the past, rode) at leisure for pleasure, exercise, or display. Promenades are pedestrian avenues pleasingly landscaped or commanding a view, often located along waterfronts and in parks. Vehicular traffic may or may not be restricted. 16 in Woodland Hills and the Ontario Mills
Ontario Mills is a large enclosed outlet mall located in Ontario, California; it is one of the primary tourist attractions in the Inland Empire. 30, in a scheme that will help it continue its expansion and pay off debt.
The nation's largest movie-theater operator announced Wednesday it had filed for an initial public offering of a new real estate investment trust to sell $275.2 million in stock. The new company, Entertainment Properties Trust, will buy the megaplexes, four of which are under construction, for $247 million and lease them back to AMC.
The IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , expected to be launched in November, will create the nation's first publicly traded REIT REIT
See: Real Estate Investment Trust
See real estate investment trust (REIT). that specializes in movie theaters. It will also give fresh funds to AMC, which is carrying more than $400 million in debt because of its aggressiveness in opening the massive movie palaces.
The REIT will have an option to buy five more AMC megaplexes currently under construction for $137 million. AMC executives have indicated Entertainment Properties may buy retail centers anchored by theaters, including those run by rival chains, or invest in other entertainment properties.
AMC launched the movie business into the era of megaplexes with the 24-screen Grand in Dallas in May 1995, followed by eight more in the next year including the Promenade 16. The Ontario Mills 30 debuted late last year as the world's largest theater complex with the Edwards chain launching a 22-screen complex across the street a few months later.
AMC's move came amid a boom in REITs on Wall Street. More than half a dozen REITs have filed to go public since August, essentially exchanging real estate for cash.