US cableco Cablevision Systems announced this week that its board has approved the leveraged spin-off of AMC Networks, a group of cable TV channels.
The spin-off of the group formerly known as Rainbow Media, will be arranged through a share distribution…
US cableco Cablevision Systems announced this week that its board has approved the leveraged spin-off of AMC Networks, a group of cable TV channels.
The spin-off of the group formerly known as Rainbow Media, will be arranged through a share distribution on 30 June.
Each holder of Cablevision class A stock will receive one AMC Networks class A share for each four Cablevision class A shares they hold. The same process will occur for holders of class B stock.
Cablevision will continue to trade on the NYSE.
As part of the spin-off, it Cablevision will incur US$2.43bn of new debt, consisting of US$1.73bn in senior secured term loans and US$700m of senior unsecured notes.
Proceeds from the financing will be used to repay AMC Networks’s outstanding debt and approximately US$1.25bn of debt held by Cablevision or its holding company, CSC Holdings.
The spin-off will also see executive changes at Cablevision and AMC.
The founder of Cablevision, Charles Dolan, will become executive chairman of AMC, while continuing in his present role as chairman of Cablevision.
As previously announced, Rainbow Media CEO Joel Sapan will become the president and CEO of AMC Networks.
Cablevision has also appointed Greg Seibert as its new CFO.
