AMC Entertainment: Dalian Wanda has never been a source of acquistion funding
AMC Entertainment Holdings commented in response to recent speculative media reports that contained some erroneous information regarding AMC, with the aim of adding clarity and factually accurate detail: Dalian Wanda has never been a source of acquisition funding for AMC. AMC has completed four circuit-wide acquisitions and bought numerous individual theatres since being purchased in 2012 by Dalian Wanda Group Co., including most recently Starplex Cinemas in 2015, ODEON & UCI Cinemas Holdings, Ltd. in 2016, Carmike Cinemas, Inc also in 2016 and Nordic Cinema Group Holding AB in 2017. At no time was Wanda ever a source of funding for any of these acquisitions or individual theatre purchases. Additional information on the individual acquisitions is provided below. Mainland China-based banks have never been a source of any funding for AMC. AMC has never received committed financing from any bank headquartered in mainland China for any purpose, including for acquisitions. All committed debt financing for AMC's three most recent acquisitions were funded by a syndicate of U.S.-based banks with AMC as the borrower without financial guarantees or credit enhancements from Wanda. The fourth acquisition was funded by AMC's available cash on hand. Intercompany transactions between AMC and Wanda are de minimis. Wanda has no special claim to monies generated through AMC's operations. The only current vehicle for making payments by AMC to Wanda is through the issuance of dividends, which are offered equally on a per share basis to all AMC shareholders. However, AMC does make normal film rental payments some of which indirectly go to Legendary Entertainment, a Wanda affiliate, in conjunction with AMC's showing films made by Legendary Entertainment and distributed by other studios, on what AMC believes to be arms-length market terms.