British TV production company RLJ Entertainment Inc. , the owner of Acorn TV, said Monday it has entered into a streaming partnership with AMC Networks Inc. , the owner of AMC, BBC America, We tv, SundanceTV, AMC Networks International, IFC and IFC Films. As part of the deal, AMC will invest $65 million in loans to RLJ, which will be used to refinance the company's senior credit facility, provide working capital, reduce the cost of capital through lower interest rates, and provide revised covenants that will increase flexibility. AMC will also receive warrants, which if exercised, would grant it a 50.1% stake in RLJ. RLJ shares surged 10% premarket on the news and were up 15% on the year through Friday's close, while the S&P 500 has gained 4%.
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.