AMC Entertainment has secured a debt agreement that the financially stretched global exhibitor says it views as “highly beneficial to the company and its shareholders.”
When completed, the complex deal will reduce the principal amount of AMC’s total debt, the company said, extend the maturities of a significant percentage of outstanding debt, decrease interest expense and improve the company’s cash and liquidity position.
AMC has more than 660 sites in the US and, through its Odeon subsidiary, operates in 14 European countries, including the UK, Italy and Spain. Most of the company’s cinemas around the world closed in mid-March because of the Covid-19 pandemic and corporate staff were put on furlough.
In June, the company warned in a financial statement that because of the ongoing pandemic “substantial doubt exists about our ability to continue as a going concern for a reasonable period of time.”
The new agreement amends exchange offers outlined in June and is supported, AMC said, by more than 73% of the company’s existing subordinated note holders.
Under the arrangement, existing subordinated debt holders will buy $200m worth of new notes and bondholder Silver Lake Partners will provide another $100m in senior loans.
No comments yet