AMC Entertainment completes $350M at-the-market offering, reducing debt by $62M

AMC Entertainment “announced that it has completed its previously disclosed $350 million at-the-market equity offering launched on November 9, 2023 and repurchased debt or exchanged debt for equity thereby reducing liabilities by $62.28 million. AMC raised $350 million of new equity capital, before commissions and fees, through the sale of approximately 48.0 million shares, at an average price of approximately $7.29 per share. Using a portion of the proceeds raised through the ATM offering, AMC repurchased $50 million principal amount of its 10% second lien notes due 2026 at an average discount of 19.67%, plus accrued interest. In addition, AMC exchanged $12.275 million principal amount of its 10% second lien notes due 2026 plus accrued interest for approximately 1.6 million shares of Class A common stock with an implied value of $8.19 per share.” CEO Adam Aron said, “Successfully raising an additional $350 million of equity capital and reducing debt by more than $62 million in a single month underscores our continued commitment to strengthen our balance sheet by bolstering liquidity and methodically reducing debt levels. Thus far in 2023, AMC has raised $865 million of gross equity capital and lowered liabilities by approximately $440 million by reducing our corporate borrowings by approximately $350 million and repaying more than $90 million of COVID-19 related deferred rent liabilities. Our commitment to strengthening the balance sheet is further evidenced by the more than $1 billion reduction in our corporate borrowings and deferred rent liabilities since December 31, 2020.”