AMC Entertainment Completes Major Refinancing Transactions to Strengthen Balance Sheet and Financial Flexibility

AMC Entertainment completes major refinancing transactions, including new capital funding of $244mln, significant debt reduction, and resolution of litigation with note holders. The company aims to benefit from a recovering box office and enhance its market position. The move is supported by around 90% of AMC's term loan lenders.

AMC Entertainment Holdings, Inc. (NYSE: AMC) has successfully completed a series of comprehensive refinancing transactions that significantly strengthen its balance sheet and position the company to capitalize on the recovering box office. The transactions, which were supported by approximately 90% of AMC's term loan lenders, include new capital funding of $244 million, substantial debt reduction, and the resolution of litigation with note holders [1].

The new financing will primarily be used to refinance debt maturing in 2026, specifically the redemption of $590 million of existing notes for $857 million of new Senior Secured Notes due in 2029 [1]. This move will help AMC address its near-term debt maturities and bolster its financial flexibility.

Additionally, AMC has equitized $143 million of its existing debt, with the potential to equitize up to $337 million of existing debt, including the issuance of approximately $194 million of new Senior Secured Exchangeable Notes due in 2030 [1]. This debt reduction will further enhance the company's financial position.

The successful completion of these transactions also includes the full resolution of litigation with holders of AMC's 7.5% Senior Secured Notes due in 2029, which was supported by the majority of AMC's term loan lenders [1]. This resolution will help AMC avoid potential legal disputes and focus on its operational and strategic initiatives.

The support from around 90% of AMC's term loan lenders underscores the confidence in the company's direction and its ability to execute its financial plan. Adam Aron, Chairman and CEO of AMC, commented, "With the closing of these transformative transactions and the full redemption of our 2026 debt maturities, AMC is unquestionably on offense" [1].

AMC's strategic initiatives include expanding its premium large format and extra-large screens globally, deploying state-of-the-art laser projection technology, and enhancing its marketing initiatives to offer compelling experiences to moviegoers. These moves are expected to further solidify AMC's position as the leading movie exhibition company worldwide.

The successful completion of these refinancing transactions positions AMC to benefit from the recovering box office, both domestically and internationally. With a strengthened balance sheet and enhanced financial flexibility, AMC looks to the future with optimism, momentum, and confidence.

References:
[1] https://www.morningstar.com/news/business-wire/20250724376235/amc-entertainment-holdings-inc-announces-successful-closing-of-comprehensive-refinancing-transactions-that-strengthen-the-balance-sheet-and-position-the-company-to-prosper-from-robust-box-office-recovery
[2] https://finance.yahoo.com/news/amc-entertainment-holdings-inc-announces-113000522.html