AMC Theatres Raises $917M of Investment Capital, Says Bankruptcy is ‘Completely Off Table’
LEAWOOD, KAN. — In effort to remain financially afloat amid the COVID-19 pandemic, AMC Entertainment Holdings Inc. (NYSE: AMC) has raised or signed commitment letters to receive $917 million of new equity and debt capital. The Leawood-based movie theater company says the increased liquidity should enable it to survive well into 2021.
Of the $917 million, AMC raised $506 million of equity from the issuance of new common shares. Additionally, the company executed commitment letters for $411 million of incremental debt capital from upsizing and refinancing its European revolving credit facility. The $917 million capital infusion is on top of $1 billion of cash that AMC raised between April and November of 2020.
“Any talk of an imminent bankruptcy for AMC is completely off the table,” says Adam Aron, CEO and president.
AMC says that an increase in cinema attendance is likely given the push to vaccinate the general population. AMC also presumes it will continue to make progress in its ongoing dialogue with theater landlords about the amounts and timing of owed theater lease payments.
Following the news, AMC’s stock price jumped from $3.51 per share at Friday’s close to $4.72 per share on Monday’s opening. The stock traded at $6.36 per share this time last year.
Even though movie theaters have reopened with limited capacities, struggles remain since many patrons are hesitant to return and several movie release dates were delayed. CNBC reports that the few films that remain in February or March are being released on streaming services such as HBO Max and Disney+ in addition to theaters.
AMC operates approximately 1,000 theaters and 10,700 screens worldwide.
— Kristin Hiller