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AMC Entertainment Holdings Inc. AMC,
Said Thursday that a group of investors comprising units of private equity firm Silver Lake elected to convert the entire $ 600 million of the movie chain’s convertible 2.95% senior notes due in 2026 into Class A common shares, at a conversion price of $ 13.51 per share. The stock closed at $ 19.90 on Wednesday, after being swept into the short squeeze in shares of video game retailer GameStop Inc. GME,
which has skyrocketed more than 1,600% in the past two weeks, thanks to investor support on Reddit’s WallStreetBets bulletin board. AMC said the conversion would result in the issuance of 44.4 million new shares. The conversion will reduce the company’s debt by $ 600 million. AMC shares rose 4.4% pre-market and gained 839% year-to-date, despite the many challenges facing the world’s largest cinema operator due to the coronavirus pandemic. The S&P 500 SPX,
has fallen 0.4% year-to-date.
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