An earlier model of this report had a typo within the sum AMC has in dedication letters. It has been corrected.
AMC Leisure Holdings Inc. shares
soared 36% in premarket commerce Monday, after the largest cinema-chain operator on the planet mentioned it has raised $917 million in debt and fairness to assist it get via a coronavirus-impacted winter. AMC mentioned it has raised $506 million of fairness by issuing 164.7 million new shares. That’s mixed with a beforehand introduced $100 million of extra first-lien debt and the concurrent issuance of twenty-two million new widespread shares to transform $100 million of second-lien debt into fairness. The corporate has dedication letters for $411 million of incremental debt capital in place via mid-2023, until repaid earlier than then, via the upsizing and refinancing of a European revolving credit score facility. The corporate might pay non-cash PIK (cost in variety) curiosity via the period of the European debt. “Primarily based on a wide range of assumptions, together with future attendance ranges, the corporate estimates that its monetary runway has been prolonged deep into 2021,” AMC mentioned in a press release. “AMC is also presuming that it’s going to proceed to make progress in its ongoing dialogue with theatre landlords in regards to the quantities and timing of owed theatre lease funds.” Chief Government Adam Aron mentioned the brand new financing means any speak of imminent chapter “is totally off the desk.” AMC has repeatedly raised capital via the pandemic to bolster its liquidity and keep afloat. Shares have fallen 48% within the final 12 months, whereas the S&P 500
has gained 16.6%.