AMC says bankruptcy ‘off the table’ after fundraising

(Bloomberg) – AMC Entertainment Holdings Inc. She said she was no longer at risk of filing for imminent bankruptcy after riding in new $ 917 million funding, and continued her fight to ward off the effects of Covid 19 on her theater business.

Shares of the world’s largest cinema chain soared to 50% in pre-market trading and rose 35% to $ 4.75 at 8:41 a.m. in New York. And AMC bonds were among the biggest gainers in the U.S. high-yield market on Monday. The second mortgage notes rose as high as 12.75 cents on the dollar to a high of 52.25 cents, according to Trace bond trading data.

The Kansas-based Lived raised $ 506 million in equity after pledging $ 100 million in additional first-tier debt and converting $ 100 million from second-tier debt to capital, it said Monday. It was also reported that it had executed letters of commitment for $ 411 million in new debt by mid-2023.

“Any talk of imminent bankruptcy for AMC is completely off the table,” said AMC CEO Adam Aron.

AMC’s deal is already responding to a combination of debt and capital issued in recent months, according to the statement. With the new money, AMC said it had expanded its “deep” financial trajectory in 2021, a timeline in which theater networks await the release of vaccines against the Corona virus, and film viewers return to release blockbusters.

AMC estimated that it could last until July in the absence of an increase in attendance, and assuming continued concessions by homeowners, who owed $ 450 million as of Dec. 31, according to authorities. AMC announced that it had stopped paying rent for a “substantial portion” of the rent and that it had received default notices.

“Looking ahead, for AMC to succeed in the medium term, we will need a large portion of the general public in the U.S. and beyond to be vaccinated,” Arun said in a statement.

The company warned that even with vaccination and increased presence in cinemas, the virus could worsen or make other strains appear and cause the use of cash to remain unsafe. Thus, AMC said it is examining additional potential liquid sources that may be sought in the future.

The landlord speaks

AMC said late last year that it needed to raise at least $ 750 million to stay in business. Without new money, his existing cash would have been depleted as early as this month. The company also spoke with its apartment owners to amend certain rental terms and avoid a potential cash shortage.

The latest financing deal includes a £ 400 million ($ 547 million) loan to its UK subsidiary Odeon Cinemas Group Ltd., which will refinance a £ 100 million revolving facility and provide £ 300 million in liquidity. The deal is subject to Silver Lake management approval Convert AMC to 2026.

The $ 100 million first mortgage debt came from the sale of 2026 banknotes to Mudrick Capital Management on Jan. 15, AMC said.

The theater networks were badly damaged by the shutdowns imposed by the government during the Cubid-19 epidemic. While some locations have managed to reopen at limited capacity, many of the films have not been reluctant to come. The problem was compounded by studios that delayed the major editions that drive ticket sales.

On Monday, AMC said fourth-quarter attendance was down 92 percent in the U.S. and 89 percent internationally over the same period last year, burning $ 124 million a month.

(Updates in debentures in the second paragraph, additional details from the fifth paragraph).

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