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LEAWOOD, Kan. - AMC Entertainment Holdings, Inc. (NYSE:AMC), currently operating with a market capitalization of $1.34 billion, has entered into a Transaction Support Agreement with key creditor groups to strengthen its balance sheet and resolve outstanding litigation, according to a press release statement. InvestingPro data shows the company operates with a significant debt burden of $8.3 billion and faces challenges with short-term obligations exceeding liquid assets.
The agreement includes approximately $223.3 million of new money financing primarily intended to refinance debt maturing in 2026, as well as the immediate conversion of at least $143 million of existing debt to equity, with potential to increase to $337 million over time. With a current ratio of 0.42, this restructuring comes at a crucial time for AMC. For deeper insights into AMC’s financial health and detailed analysis, check out the comprehensive Pro Research Report available on InvestingPro.
The deal has secured support from holders representing about 62% of AMC’s 7.5% Senior Secured Notes due 2029, approximately 76% of Muvico’s 6.00%/8.00% Senior Secured Exchangeable Notes due 2030, and about 14% of AMC’s term loans.
Under the agreement, consenting 7.5% noteholders will provide the new financing and exchange $590 million of existing notes for $825.1 million of new Senior Secured Notes due 2029. Consenting exchangeable noteholders will receive 79.8 million shares of AMC Class A common stock in exchange for their debt.
The transaction requires consent from term loan lenders representing at least 50.1% of AMC’s outstanding term loans to be fully effective, except for the equity conversion component.
The agreement also includes a full resolution of litigation with holders of AMC’s 7.5% Senior Secured Notes, with consenting noteholders agreeing to dismiss ongoing litigation upon completion of the transactions.
AMC Chairman and CEO Adam Aron noted that the company is experiencing improved box office performance, with the second quarter of 2025 showing significant improvement compared to the same period last year. The company projects that 2025 will deliver the strongest box office performance in five years, with further growth anticipated in 2026. Currently generating annual revenue of $4.55 billion with EBITDA of $271.3 million, AMC’s turnaround efforts are crucial. According to InvestingPro’s Fair Value analysis, the stock appears to be undervalued at current levels.
In other recent news, AMC Entertainment Holdings reported a record-breaking Memorial Day holiday weekend, with over 7 million guests attending its theaters globally, marking the highest attendance for a five-day period in 2025. This surge was driven by popular films like "Lilo & Stitch" and "Mission: Impossible – The Final Reckoning," contributing to record-setting box office revenues. Despite this success, B.Riley initiated coverage on AMC with a Neutral rating and a $3 price target, reflecting concerns over the company’s financial leverage and first-quarter box office performance. Texas Capital Securities also issued a Hold rating for AMC, citing the company’s strong market position but noting its substantial debt and upcoming maturities as potential challenges. AMC has partnered with National CineMedia to increase pre-movie advertisements, aiming to boost revenue amid financial difficulties. The company plans to introduce a "platinum spot" for commercials starting July 1. Meanwhile, Amcor has developed recyclable food trays for Cofigeo’s William Saurin ready meal line, designed to meet French recycling guidelines and improve consumer convenience. These developments highlight ongoing strategic efforts by AMC and Amcor to enhance their market positions and financial performance.
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