KANSAS CITY, MO. (CelebrityAccess) — AMC Entertainment Holdings Inc., operators of the world’s largest cinema chain, announced that since December 14, they have successfully secured 917 million of new equity and debt capital to help them continue to weather the coronavirus pandemic.
Of this $917 million, AMC has raised $506 million of equity, from the issuance of 164.7 million new common shares, along with the previously announced securing of $100 million of additional first-lien debt and the concurrent issuance of 22 million new common shares to convert $100 million of second-lien debt into equity.
In addition, AMC signed commitment letters for $411 million of incremental debt capital in place through mid-2023, unless repaid before then, through the upsizing and refinancing of its European revolving credit facility.
In December, AMC raised an additional $100 million but at the time, expressed “substantial doubt” in their ability to continue as a going concern but in light of the new financing, AMC said its financial runway has been extended deep into 2021.
AMC stated that it also expects to make progress in its ongoing negotiations with landlords over the amount and timing of 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. This means that any talk of an imminent bankruptcy for AMC is completely off the table,” AMC President & CEO Adam Aron said.
“Looking ahead, for AMC to succeed over the medium term, we are going to need for much of the general public in the U.S. and abroad to be vaccinated. To that end, we are grateful to the world’s medical communities for their heroic efforts to thwart the COVID virus. Similarly, we welcome the commitment by the new Biden administration and of other governments domestically and internationally to a broad-based vaccination program,” he added.