Shares of AMC Entertainment Holdings Inc.
Jumped 36% in pre-market trade on Monday after the world’s largest cinema chain operator announced it had raised $ 917 million in debt and equity to help it get through a winter affected by the coronary virus. AMC announced that it has raised $ 506 million in equity through the issuance of 164.7 million new shares. This is combined with an additional $ 100 million first mortgage debt and a parallel offering of 22 million new ordinary shares to convert $ 100 million of second mortgage debt into capital. The Company has $ 11 million worth of accumulated debt capital established by mid-2023, unless repaid beforehand, through an increase and refinancing of a European revolving credit facility. The Company may pay non-cash interest (PIK) interest during the European debt period. “Based on a range of assumptions, including future attendance levels, the Company estimates that its financial track will be significantly expanded in 2021,” the AMC statement said. “AMC also assumes that it will continue to advance its ongoing dialogue with theater owners regarding the amounts and timing of theater lease payments.” CEO Adam Aron said the new funding means any talk of bankruptcy is close “completely off the table.” AMC has repeatedly raised capital through the plague to strengthen liquidity and stay afloat. Shares have fallen 48% in the last 12 months, while S&P 500