AMC Entertainment Holdings on Monday announced an agreement with creditors to extend up to $2.45 billion of debt maturities from 2026 to 2029 and beyond. The agreement will also allow AMC to reduce its debt by $464 million by converting exchangeable notes into equity. This move comes as the company navigates the aftermath of last year’s Hollywood strikes, which had significantly impacted theater chains nationwide.
CEO Adam Aron expressed optimism about the future, stating that the challenges of the first half of 2024 are now behind them, and they expect strong year-over-year box office growth in the latter half of 2024, continuing into 2025 and 2026. The agreement is seen as a strategic move to stabilize AMC’s financial footing and capitalize on the anticipated recovery in the entertainment industry.
Under the terms of the deal, AMC will issue $1.2 billion of new secured term loans due 2029 in exchange for the open market purchase of senior secured term loans due 2026. Additionally, AMC and its units will issue about $414 million of exchangeable notes for cash, using the proceeds to repurchase approximately $414 million of second-lien notes, further reducing their debt obligations.
