AMC shares continued to drop over 8% while APE gained over 5% in morning trading as AMC to raise $110 million through preferred stock sale.
AMC Entertainment Holdings said last Thursday it would raise $110 million in new equity capital through the sale of its preferred stock.
Antara Capital will buy APE at an average price of 66 cents per share.
Antara, a current AMC debt holder, will also exchange $100 million in debt for about 91 million APE units, which would reduce AMC's annual interest expense by about $10 million.
AMC in August announced APE as a special dividend for shareholders and a means to raise capital in the future. The company in the same month listed the stock in New York under the ticker 'APE'.
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