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AMC Entertainment Holdings Inc. shares AMC,
Monday, after the world’s largest movie chain operator said it raised $ 917 million in debt and equity to help it get through a coronavirus-hit winter. AMC said it had raised $ 506 million in equity by issuing 164.7 million new shares. This is combined with an additional $ 100 million senior debt announced previously and the simultaneous issuance of 22 million new common shares to convert $ 100 million of second debt to equity. The company has letters of commitment for $ 11 million of additional debt capital in place until mid-2023, unless they are repaid before then, through the increase and refinancing of a debt facility. European revolving credit. The company can pay PIK (payment in kind) non-monetary interest over the term of the European debt. “Based on a variety of assumptions, including future attendance levels, the company estimates its financial trail has been extended until 2021,” AMC said in a statement. “AMC also assumes that it will continue to make progress in its ongoing dialogue with theater owners on the amounts and timing of theater rental payments due.” Managing Director Adam Aron said the new funding means any talk of impending bankruptcy “is completely irrelevant.” AMC has repeatedly raised capital during the pandemic to bolster its liquidity and stay afloat. Stocks have fallen 48% in the past 12 months, while the S&P 500 SPX,
gained 16.6%.
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