Debt-laden theater chain AMC reaches new refinancing deal
Business
Debt-laden theater chain AMC reaches new refinancing deal
(Reuters) - AMC Entertainment Holdings (AMC.N), opens new tab said on Monday it had reached an agreement with creditors that extends up to $2.45 billion of debt maturities from 2026 to 2029 and beyond.
The agreement will also allow AMC to reduce debt by $464 million by converting exchangeable notes into equity.
The company had been grappling with the aftermath of the Hollywood strikes last year that shut down productions and affected theater chains across the country.
"The box office challenges of the first half of 2024 are now in the rear-view mirror. The recovery momentum is back. We expect strong year-over-year box office growth in the back half of 2024, continuing into 2025 and 2026," CEO Adam Aron said in a statement.
Under the terms of the deal, AMC will issue $1.2 billion of new secured term loans due 2029 in consideration for an open market purchase of senior secured term loans due 2026.
