Cablevision Board Approves AMC Networks Spin-off6 Jun, 2011 By: Erik Gruenwedel
Network’s notable serials include “The Killing,” “The Walking Dead” and Emmy-winning serials “Mad Men” and “Breaking Bad”
The board of Cablevision Systems Corp. June 6 approved the spin-off of AMC Networks — a consortium of properties that include the AMC, WE tv, IFC, Sundance Channel and IFC Films channels.
New York-based Cablevision, with about 3 million subscribers, is one of the largest regional multichannel video distributors in the country.
AMC original series include “The Killing,” “The Walking Dead” and Emmy-winning serials “Mad Men” and “Breaking Bad.”
As part of the deal, AMC Networks becomes a publicly traded company and incurs about $2.43 billion of new debt, consisting of $1.73 billion aggregate principal amount of senior secured term loans and $700 million aggregate principal amount of senior unsecured notes. Proceeds from the financing will be used to repay all outstanding AMC Networks debt and approximately $1.25 billion of Cablevision and/or CSC Holdings LLC debt.
Shares of AMC Networks common stock will not be distributed to Cablevision stockholders. Instead, they will be aggregated and sold on the public market, with the net proceeds distributed in the form of cash payments to stockholders who otherwise would be entitled to a fractional share of AMC Networks common stock.
Following the spin-off, Cablevision founder Charles Dolan will become executive chairman of AMC Networks. Dolan will continue in his present role as chairman of Cablevision. The company announced earlier this year that current Rainbow CEO Josh Sapan will become president and CEO of AMC Networks.