Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- AMC Entertainment Holdings, Inc. (NYSE:AMC) stock initially dropped 4% on Tuesday morning after the movie theater chain announced a collaborative agreement with creditors to restructure its debt and strengthen its balance sheet. The stock later pared its decline to 0.5%.
The agreement includes approximately $223 million in new financing that will primarily be used to refinance debt maturing in 2026. It also features the immediate conversion of at least $143 million of existing debt into equity, with potential to increase that amount to $337 million over time.
Under the terms of the agreement, consenting holders of AMC’s 7.5% Senior Secured Notes due 2029, representing approximately 62% of these notes, will provide the new financing. They will also exchange $590 million of existing notes for $825.1 million in new Senior Secured Notes due 2029.
The deal will convert debt held by certain Muvico noteholders into 79.8 million shares of AMC Class A common stock. Additionally, the agreement resolves ongoing litigation with holders of AMC’s 7.5% Senior Secured Notes.
"The successful signing of this Transaction (JO:NTUJ) Support Agreement is yet another important and strategic move, as AMC continues to fortify our financial footing, and improve the trajectory of our post pandemic recovery," said Adam Aron, Chairman and CEO of AMC.
The company noted that the domestic box office in the second quarter is up compared to the same period last year, with full-year industry projections pointing to the strongest box office performance in five years. AMC expects this positive trend to continue into 2026.
The restructuring agreement requires consent from term loan lenders representing at least 50.1% of AMC’s outstanding term loans to become effective.
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