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AMC Entertainment Holdings, Inc. (NYSE:AMC) announced Monday that it has delivered conditional full redemption notices to holders of its outstanding 5.875% Senior Subordinated Notes due 2026 and 10%/12% Cash/PIK Toggle Second Lien Subordinated Secured Notes due 2026. The company intends to redeem these notes in full at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest up to the applicable redemption date. This move comes as the company manages its substantial $8.3 billion debt load, with InvestingPro data showing a concerning current ratio of 0.42.
The redemptions are subject to the successful completion of AMC’s previously announced private offering of Senior Secured Notes due 2029, which is expected to generate at least $223 million in aggregate gross proceeds for the company. According to InvestingPro analysis, AMC’s financial health metrics suggest the company is quickly burning through cash, with short-term obligations exceeding liquid assets. Get the full picture with InvestingPro’s comprehensive research report, available for over 1,400 US stocks.
AMC stated that this SEC filing does not serve as the official notice of redemption. Details regarding the terms and conditions of the redemptions have been provided in notices distributed to noteholders by the respective trustees under the indentures governing the notes.
This information is based on a press release statement included in AMC Entertainment Holdings, Inc.’s filing with the Securities and Exchange Commission.
In other recent news, AMC Entertainment Holdings, Inc. has announced a debt restructuring agreement aimed at strengthening its balance sheet. The agreement includes $223 million in new financing, primarily to refinance debt maturing in 2026, and converts at least $143 million of existing debt into equity, with the potential to increase to $337 million. Additionally, AMC will exchange $590 million of existing notes for $825.1 million in new Senior Secured Notes due 2029. This restructuring also resolves ongoing litigation with holders of AMC’s 7.5% Senior Secured Notes. In a strategic move to boost income, AMC has agreed to increase pre-movie commercials in its theaters through a deal with National CineMedia Inc. Furthermore, Texas Capital Securities initiated coverage on AMC with a Hold rating and a price target of $3.00, acknowledging AMC’s strong market position but expressing concerns over its substantial debt and financial health. The firm anticipates increased theatrical attendance and box office revenues in the coming years, driven by a strong film slate. The developments reflect AMC’s efforts to navigate its financial challenges while capitalizing on a recovering entertainment sector.
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