S&P Cuts AMC Entertainment's Rating to Selective Default Following $1.1B Debt Exchange

Dow Jones07-24

By Victor Swezey

S&P Global Ratings downgraded AMC Entertainment following a $1.1 billion debt exchange the credit rating firm described as distressed.

AMC was cut to selective default from CCC+ since under the terms of the deal lenders would receive less than initially promised, S&P said on Tuesday. The exchange stripped collateral from secured notes due in 2029, as well as any part of the existing term loan that aren't exchanged.

On Monday, AMC said it repaid $519 million of its second-lien notes due in 2026, and exchanged $1.1 billion of its term loan for a new term loan due in 2029. At the same time, AMC transferred some of its theater and intellectual property assets to a new subsidiary that will issue a term loan and exchangeable notes.

"The transaction significantly reduces AMC's 2026 debt maturities, but does not improve the company's ability to generate free operating cash flow," S&P said.

Ratings were also cut on the Leawood, Kan.-based movie theater chain's second-lien notes to D from CCC-, and on their senior secured notes due in 2029 to D from B-.

Write to Victor Swezey at victor.swezey@wsj.com; @vicswezey

(END) Dow Jones Newswires

July 23, 2024 18:13 ET (22:13 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2453926099?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-07-24 06:13","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2453926099","market":"other","top_or_hot":-1,"title":"S&P Cuts AMC Entertainment's Rating to Selective Default Following $1.1B Debt Exchange","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n  By Victor Swezey \n</p>\n<p>\n  S&amp;P Global Ratings downgraded AMC Entertainment following a $1.1 billion debt exchange the credit rating firm described as distressed. \n</p>\n<p>\n  AMC was cut to selective default from CCC+ since under the terms of the deal lenders would receive less than initially promised, S&amp;P said on Tuesday. The exchange stripped collateral from secured notes due in 2029, as well as any part of the existing term loan that aren't exchanged. \n</p>\n<p>\n  On Monday, AMC said it repaid $519 million of its second-lien notes due in 2026, and exchanged $1.1 billion of its term loan for a new term loan due in 2029. At the same time, AMC transferred some of its theater and intellectual property assets to a new subsidiary that will issue a term loan and exchangeable notes. \n</p>\n<p>\n  \"The transaction significantly reduces AMC's 2026 debt maturities, but does not improve the company's ability to generate free operating cash flow,\" S&amp;P said. \n</p>\n<p>\n  Ratings were also cut on the Leawood, Kan.-based movie theater chain's second-lien notes to D from  CCC-, and on their senior secured notes due in 2029 to D from  B-. \n</p>\n<p>\n  Write to Victor Swezey at victor.swezey@wsj.com; @vicswezey \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 23, 2024 18:13 ET (22:13 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>S&P Cuts AMC Entertainment's Rating to Selective Default Following $1.1B Debt Exchange</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nS&P Cuts AMC Entertainment's Rating to Selective Default Following $1.1B Debt Exchange\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-24 06:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By Victor Swezey \n\n\n  S&P Global Ratings downgraded AMC Entertainment following a $1.1 billion debt exchange the credit rating firm described as distressed. \n\n\n  AMC was cut to selective default from ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AMC","symbol_name":"AMC院线","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2453926099","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2453926099","pubTimestamp":1721772780,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"S&P Global Ratings downgraded AMC Entertainment following a $1.1 billion debt exchange the credit rating firm described as distressed.AMC was cut to selective default from CCC+ since under the terms of the deal lenders would receive less than initially promised, S&P said on Tuesday. The exchange stripped collateral from secured notes due in 2029, as well as any part of the existing term loan that aren't exchanged.On Monday, AMC said it repaid $519 million of its second-lien notes due in 2026, and exchanged $1.1 billion of its term loan for a new term loan due in 2029. At the same time, AMC transferred some of its theater and intellectual property assets to a new subsidiary that will issue a term loan and exchangeable notes.\"The transaction significantly reduces AMC's 2026 debt maturities, but does not improve the company's ability to generate free operating cash flow,\" S&P said.Ratings were also cut on the Leawood, Kan.-based movie theater chain's second-lien notes to D from  CCC-, and","collect":0,"end_time":0,"defaultTopTitle":"","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"AMC":"AMC院线","SPGI":"标普全球"},"translate_title":"1.1 B美元债务交换后，标准普尔将AMC院线评级下调至选择性违约","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMC":1,"SPGI":0.9},"content_text":"By Victor Swezey \n\n\n  S&P Global Ratings downgraded AMC Entertainment following a $1.1 billion debt exchange the credit rating firm described as distressed. \n\n\n  AMC was cut to selective default from CCC+ since under the terms of the deal lenders would receive less than initially promised, S&P said on Tuesday. The exchange stripped collateral from secured notes due in 2029, as well as any part of the existing term loan that aren't exchanged. \n\n\n  On Monday, AMC said it repaid $519 million of its second-lien notes due in 2026, and exchanged $1.1 billion of its term loan for a new term loan due in 2029. At the same time, AMC transferred some of its theater and intellectual property assets to a new subsidiary that will issue a term loan and exchangeable notes. \n\n\n  \"The transaction significantly reduces AMC's 2026 debt maturities, but does not improve the company's ability to generate free operating cash flow,\" S&P said. \n\n\n  Ratings were also cut on the Leawood, Kan.-based movie theater chain's second-lien notes to D from  CCC-, and on their senior secured notes due in 2029 to D from  B-. \n\n\n  Write to Victor Swezey at victor.swezey@wsj.com; @vicswezey \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  July 23, 2024 18:13 ET (22:13 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"Policy And Regulatory","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.3","shortVersion":"4.26.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2453926099"}