AMC Secures $917M Lifeline To Avert Bankruptcy; Shares Pop 26% support@smarteranalyst.com (Ben Mahaney) Tue, January 26, 2021, 8:50 AM Shares of AMC Entertainment popped 26% on Jan. 25 after the cash-strapped theatre chain announced that it has secured $917 million in fresh capital to avert bankruptcy and fund its financial needs ?deep into 2021.? The stock appreciated an additional 10% in Monday?s after-hours trading.
Specifically, AMC (AMC) disclosed that since Dec. 14, it has successfully raised or signed commitment letters to receive $917 million of new equity and debt capital. Out of the new capital, $506 million will be raised from the issuance of 164.7 million new common shares, in addition to the $100 million of first-lien debt. AMC also received commitment letters for $411 million of incremental debt capital through mid-2023.
Furthermore, the theatre chain operator, which has seen its businesses shut down due to the pandemic, said that it expects to make progress in its ongoing talks with theatre landlords about the amounts and timing of owed theatre lease payments.
?Today, the sun is shining on AMC. After securing more than $1 billion of cash between April and November of 2020, through equity and debt raises along with a modest amount of asset sales, we are proud to announce today that over the past six weeks AMC has raised an additional $917 million capital infusion to bolster and solidify our liquidity and financial position,? AMC CEO Adam Aron commented. ?This means that any talk of an imminent bankruptcy for AMC is completely off the table.?
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