AMC Entertainment Holdings, Inc. (NYSE: AMC), the world's largest movie theater chain, has reached a significant agreement with its creditors to restructure its debt and extend the maturity dates of a substantial portion of its obligations. The deal, announced on Monday, July 22, 2024, provides AMC with much-needed financial flexibility as the company navigates the recovery phase of the movie theater industry.
Under the terms of the agreement, AMC will issue $1.2 billion in new secured term loans due in 2029 in exchange for purchasing approximately $1.1 billion of its existing term loans and $100 million of its second-lien notes, both of which were originally due in 2026. Additionally, the company will issue approximately $414 million in new 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due in 2030, with the proceeds used to repurchase around $414 million of its 10%/12% Cash/PIK Toggle Second Lien Subordinated Secured Notes due in 2026.
The deal also provides AMC with the option to issue up to an additional $800 million in new term loans due in 2029 to purchase more of its existing term loans due in 2026. Furthermore, the company can issue up to an additional $50 million in exchangeable notes to refinance other outstanding debt due in 2025, 2026, and 2027. The total amount of up to $464 million in exchangeable notes would be convertible into up to approximately 92.6 million shares of AMC's Class A common stock, subject to certain terms and conditions.
