reached a debt agreement on Friday that could help the heavily leveraged exhibition chain avoid or at least forestall a liquidity crisis.
Under the deal, Silver Lake Group will purchase $100 million in first lien notes, adding to the $600 million in convertible bonds that it already holds in AMC. The company, which is the world’s largest theater chain, said in public filings that it will raise $200 million in cash by allowing debt-holders to swap their securities at a discount. As part of the deal, the interest they receive would be either 10% in cash or 12% in additional notes that would be due in 2026.
AMC said renegotiating its debt will help it manage to stay solvent through 2021. The company has been hit hard by, which has forced it to shutter its chains, depriving it of income. Even before the pandemic, AMC had amassed a great deal of debt to outfit its theaters with luxury seating, and to buy competitors such as Carmike and Odeon. The company
IamAaronsTweets I feel like you are responsible for half of their income
I was creeped out about going to movie theaters before coronavirus but now there’s no way I’m gonna sit in a dark room with a bunch of people crying and breathing heavy as they eat popcorn.
Ya know I seem to recall how we keep going into financial crisis due to the buying up of debt but this seems like a great idea.
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AMC Theatres Unveils New Debt Deal With BondholdersThe proposed debt exchange includes the Silver Lake Group purchasing $100 million in new senior notes to allow the exhibitor a financial lifeline amid the coronavirus pandemic. I’m just here for the Geese *FYI* Nobody is going to go to a movie theater until Covid goes away! If I see a COVID pool Party i participate then go to the movies
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AMC Entertainment Reaches Deal With Bondholders To Lower Debt, Raise $300M CashAMC Entertainment Friday announced a debt restructuring that it said would “prove highly beneficial to the company and its shareholders.” The deal will reduce the principal amount of it…
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