AMC completes debt refinancing, secures $244 million in new funding

LEAWOOD, Kan. - AMC Entertainment Holdings, Inc. (NYSE:AMC) announced Thursday it has completed a series of debt refinancing transactions that will strengthen the company’s capital structure and address near-term debt maturities. According to InvestingPro data, the company carries a substantial $8.3 billion in total debt, making this refinancing crucial for its financial stability.

The theater chain secured approximately $244 million in new financing that will primarily be used to redeem notes due in 2026, including its 5.875% Senior Subordinated Notes and 10.0%/12.0% Cash/PIK Toggle Second Lien Subordinated Secured Notes.

The refinancing package, which received support from approximately 90% of AMC’s term loan lenders, also includes the equitization of $143 million of existing debt, with potential to convert up to $337 million of debt to equity.

As part of the transaction, holders of AMC’s 7.5% Senior Secured Notes due 2029 exchanged $590 million of existing notes for $857 million of new Senior Secured Notes with the same maturity date. The deal also fully resolves litigation with these noteholders.

"With the closing of these transformative transactions and the full redemption of our 2026 debt maturities, AMC is unquestionably on offense," said Adam Aron, Chairman and CEO of AMC, in the press release statement.

The refinancing comes as AMC continues to expand its premium large format and extra-large screens globally, while deploying laser projection technology across its theaters.

AMC currently operates approximately 870 theaters with 9,700 screens worldwide, making it the largest movie exhibition company globally. With annual revenue of $4.55 billion and a market capitalization of $1.46 billion, InvestingPro analysis suggests the stock is currently trading below its Fair Value, presenting a potential opportunity for investors seeking exposure to the entertainment sector. Discover more insights and 12 additional ProTips about AMC’s financial health in the comprehensive Pro Research Report.

In other recent news, AMC Entertainment has been active with several financial maneuvers and analyst updates. The company has announced a conditional full redemption of its 2026 notes, contingent upon the successful completion of a private offering of Senior Secured Notes due 2029, expected to raise at least $223 million. Additionally, AMC has entered into a debt restructuring agreement with creditors, which includes $223 million in new financing aimed at refinancing debt maturing in 2026. This agreement also involves converting at least $143 million of existing debt into equity, with the possibility of increasing this conversion to $337 million.

On the analyst front, Wedbush has upgraded AMC Entertainment from Neutral to Outperform, raising the price target from $3.00 to $4.00. This upgrade is based on anticipated benefits from a more consistent film release schedule and potential market share gains in the coming years. Benchmark has reiterated its Hold rating on AMC, but significantly increased its quarterly revenue forecast to $1,329 million, citing stronger-than-expected theater attendance. These developments highlight a period of strategic adjustments and analyst optimism for AMC Entertainment.

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