AMC Entertainment Holdings (AMC.N) reported that they had come to an agreement with their creditors to extend $2.45 billion of debt that matures in 2026 to a later maturity. Along with their extension AMC will also be able to reduce its debt by $464 million by converting exchangeable notes into equity. To carry out this deal AMC will issue $1.2 billion of secured debt due in 2029 in order to make an open market purchase of secured debt that matures in 2026. AMC’s stock is currently up roughly 5% today due to the refinancing.
AMC Entertainment Holdings is a prominent movie theater chain that operates around the world. In the United States AMC has the largest market share just ahead of Regal Cinemas and Cinemark Theatres. Currently AMC operates 557 theaters with 10% of their theaters being in California. AMC was hit hard during Covid due to mandatory lockdowns and more recently is being affected by the Hollywood strike that shut down movie production last year. Looking forward the CEO Adam Aron said “The box office challenges for the first half of 2024 are now in the rear-view mirror. The recovery momentum is back. We expect strong year-over-year box office growth in the back half of 2024, continuing into 2025 and 2026.”
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