AMC reduces debt by $40 million without issuing new shares

LEAWOOD, Kan. - AMC Entertainment Holdings, Inc. (NYSE:AMC) has eliminated $39.9 million of its Senior Secured Exchangeable Notes due 2030 without issuing additional common shares or using cash, the company announced Wednesday. According to InvestingPro data, the company still carries a substantial total debt of $8.27 billion, with short-term obligations exceeding liquid assets.

The debt reduction is part of a comprehensive refinancing agreement with creditors announced in July 2025. This latest cancellation brings the total debt reduction from the July agreement to $183 million, including $143 million previously eliminated.

The $40 million debt elimination represents the maximum post-closing adjustment allowed under the July transaction terms, according to the company’s statement.

"This debt reduction of nearly $40 million, on top of the $143 million of debt equitized earlier this year, highlights our success to date in strengthening the balance sheet," said Adam Aron, Chairman and CEO of AMC. The company, currently valued at $1.49 billion in market capitalization, generated $410.4 million in EBITDA over the last twelve months, though InvestingPro analysis indicates the company is still quickly burning through cash with a current ratio of 0.44.

The debt cancellation mechanism was structured into the July agreement with creditors and was triggered based on AMC’s share price performance, requiring no additional cash outlay or share issuance.

AMC operates approximately 860 theaters with 9,700 screens globally, making it the largest movie exhibition company in the United States and Europe.

The company noted that 2025 is on pace to deliver the strongest box office performance in five years, with an "even stronger film slate scheduled for 2026," according to the press release statement. Despite challenging conditions, AMC has maintained 9.42% revenue growth over the last twelve months, though operating with a modest gross profit margin of 15.44%. For deeper insights into AMC’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, AMC Entertainment reported impressive second-quarter earnings, with revenue reaching $1.4 billion, surpassing forecasts of $1.31 billion. The company also achieved an EBITDA of $189 million, marking a 544% increase from the previous year, and exceeded consensus estimates by 26%. Despite the strong financial performance, Macquarie maintained its Neutral rating on AMC with a price target of $3.00. Additionally, AMC announced that Taylor Swift’s album release party will be screened at all 540 of its U.S. locations, as well as other theaters globally, from October 3-5. This event will feature the premiere of her new music video and other exclusive content. Furthermore, Stephen King’s "IT" will have a special one-night screening at select AMC Dolby Cinema locations ahead of an upcoming HBO series. These developments reflect AMC’s ongoing efforts to attract audiences with diverse and engaging content.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.