Cablevision's board approves spin-off of AMC Networks Inc.
M2 EQUITYBITES-June 7, 2011-Cablevision's board approves spin-off of AMC Networks Inc(C)2011 M2 COMMUNICATIONS http://www.m2.com
Telecoms, media and entertainment company Cablevision Systems Corporation (NYSE: CVC) reported on Monday that its board of directors has approved the leveraged spin-off of AMC Networks Inc, formerly known as Rainbow Media, to Cablevision shareholders.
The share distribution will occur on 30 June 2011 to Cablevision shareholders of record as of the close of business on 16 June 2011. Each Cablevision Class A stockholder will receive one share of AMC Networks Class A common stock for every four shares of Cablevision Class A common stock they hold as of the record date, while each Cablevision Class B stockholder will receive one share of AMC Networks Class B common stock for every four shares of Cablevision Class B common stock held.
After the spin-off Cablevision founder Charles F Dolan will become executive chairman of the new, publicly-traded AMC and also continue as chairman of Cablevision. The current Rainbow CEO Josh Sapan will become president and CEO of AMC Networks.
Rainbow Media was founded as a Cablevision subsidiary in 1980 and includes programming networks AMC, IFC, Sundance Channel and WE tv.
As part of the leveraged spin-off AMC will incur approximately USD2.43bn of new debt, consisting of USD1.73bn aggregate principal amount of senior secured term loans and USD700m aggregate principal amount of senior unsecured notes. Proceeds from the financing will be used to repay all outstanding AMC Networks debt and approximately USD1.25bn of Cablevision and/or CSC Holdings LLC debt.
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