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AMC Raises $917 Million to Weather ‘Darkish Coronavirus-Impacted Winter’

AMC Theatres, the world’s largest cinema chain, has raised $917 million in new fairness and debt capital, the corporate mentioned on Monday.

“This elevated liquidity ought to permit the corporate to make it by way of this darkish coronavirus-impacted winter,” the corporate mentioned, including that its “monetary runway has been prolonged deep into 2021.”

AMC has raised the funds from Dec. 14, 2020. Of the $917 million, AMC has raised $506 million of fairness, from the issuance of 164.7 million new frequent shares, together with the beforehand introduced securing of $100 million of extra first-lien debt and the concurrent issuance of twenty-two million new frequent shares to convert $100 million of second-lien debt into fairness.

As well as, the corporate has executed dedication letters for $411 million of incremental debt capital in place by way of mid-2023, except repaid earlier than then, by way of the upsizing and refinancing of its European revolving credit score facility.

The chain says that it presumes that it’s going to proceed to make progress in its ongoing dialogue with theater landlords in regards to the quantities and timing of owed theater lease funds, and is hopeful that the continuing vaccination push will lead to a rise in cinema attendance.

Adam Aron, AMC CEO and president, mentioned: “At present, the solar is shining on AMC. After securing greater than $1 billion of money between April and November of 2020, by way of fairness and debt raises together with a modest quantity of asset gross sales, we’re proud to announce as we speak that over the previous six weeks AMC has raised an extra $917 million capital infusion to bolster and solidify our liquidity and monetary place. Which means any speak of an imminent chapter for AMC is totally off the desk.”

“Wanting forward, for AMC to succeed over the medium time period, we’re going to want for a lot of most people within the U.S. and overseas to be vaccinated,” Aron added. “To that finish, we’re grateful to the world’s medical communities for his or her heroic efforts to thwart the COVID virus. Equally, we welcome the dedication by the brand new Biden administration and of different governments domestically and internationally to a broad-based vaccination program.”

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