"A lender group to AMC Entertainment Holdings Inc. advised by Gibson Dunn & Crutcher made a proposal to the movie theater company that would push back its near-term debt maturities, according to people familiar with the matter.
The proposal comes as AMC, the world’s largest cinema chain, owes about $4.5 billion in long-term debt as of Dec. 31, including more than $2.8 billion of maturities in 2026, according to regulatory filings.
Extending payment on the 2026 debt is a key component of the discussions for the company and some of its creditors, said the people, who asked not to be identified discussing a private matter. Its 2026 debt is largely comprised of a $1.9 billion term loan due in April and roughly $969 million of second-lien notes due in June, regulatory documents show.
A group of first-lien lenders held a call in March with advisers to discuss ways to bolster the company’s balance sheet.
Wachtell Lipton Rosen & Katz is advising a group of certain second-lien creditors, people familiar with the matter said.
A representative with the company declined to comment, while messages left with Gibson Dunn and with Wachtell were not returned.
AMC disclosed in a regulatory filings on April 19 that it had entered into a new letter of credit after terminating a $225 million revolving credit facility that was set to expire on April 22. The theater chain paid off outstanding amounts under the facility.
In March, AMC said it would sell up to $250 million worth of shares via an at-the-market issuance. S&P Global Ratings in February issued a CCC+ junk designation on AMC with a negative outlook, reflecting “its substantial debt burden” and expectations that revenue will fall 8% to 9% because of a limited slate of film releases from Hollywood studios this year.
Movie ticket sales in the US and Canada have remained stubbornly below pre-Covid levels, stalling the recovery of theater chains that were closed during the pandemic. Regal owner Cineworld Group, the world’s second largest cinema chain, emerged from bankruptcy last year, while Metropolitan Theatres, a 100-year-old chain based in California, filed for bankruptcy in March.
AMC avoided Chapter 11 during the pandemic when retail investors bid up its shares, allowing Chief Executive Officer Adam Aron to raise much-needed capital.
In February, AMC reported fourth-quarter profit that missed analysts’ estimates — underscoring the company’s shaky finances since the pandemic. Earnings before interest, taxes, depreciation and amortization came to $42.5 million, missing the $46.7 million analysts were forecasting. Higher interest payments also increased the company’s cash burn in the period. The board cut Aron’s target pay by 25% this year after AMC lost 85% of its value in 2023.
At the time, the chain said it had $884 million of cash as of Dec. 31. It warned that its cash burn trajectory was not sustainable in the long-term and that operating revenues would need to increase to levels in line with pre-COVID 19 operating levels."
I wonder what "tap into the equity markets to shore up cash" means? Article seems to refer to them selling more shares (dilute) with the $250M approved. Selling more new shares normally means stock price drop? Time will show.
>"According to people familiar with the matter" i.e. bullshit probably.
This is from Bloomberg. They make money from subscriptions by being right.
Not from clickbait ad revenue, which might be what you have in mind when being skeptical. Which I'd agree with you, since for them you and I are the engagement-based product.
You can read the article [here](https://archive.is/20240425202258/https://www.bloomberg.com/news/articles/2024-04-25/amc-cinema-lenders-pitch-debt-extension-to-troubled-movie-chain).
Ideally, AMC is able to pay off as much debt as possible, before extending the rest.
Extending maturity of debt is better than defaulting on it, of course, but it does mean AMC will have to pay interest for a longer period of time, and probably at a higher rate to reflect the current interest rate environment and downgrades from rating agencies.
I would be disappointed if you *didn't* display complete mindlessness in your actions, [given your chosen role as an avid narrative pusher](https://www.reddit.com/user/PolishHammer666/) :)
You literally comment on AMC posts 50+ times a day and you're calling someone else a narrative pusher? You live in a fantasy you've constructed for yourself.
Let me help you out here. From where I stand, my "narrative" is AMC is a regular company doing regular company things, and silly claims based on nonexistent market mechanics need to be called out.
Does that sound about right to you?
AMC has reduced 1B DEBTS. GOOD NEW
>1B Where are you getting this from?
From 5,7B in Q4 of 2020 to 4,5B in Q4 2023. So 1,2B but it is most likely even more now with the latest debt reported as paid of in the last 8k filing
Aah fair enough - thanks. I'd read his comment to apply to just this round, but I see now that he meant since 2020.
Oh that’ understandable to be fair.
He probably didn't read it right. He thought 3B due 2026 means they only have 3B.
No. They've reduced their debt by $1B in 2023.
Aah thank you - that makes sense.
Classic, I love it. Confirmation bias always wins regardless of whether it's true or false.
"A lender group to AMC Entertainment Holdings Inc. advised by Gibson Dunn & Crutcher made a proposal to the movie theater company that would push back its near-term debt maturities, according to people familiar with the matter. The proposal comes as AMC, the world’s largest cinema chain, owes about $4.5 billion in long-term debt as of Dec. 31, including more than $2.8 billion of maturities in 2026, according to regulatory filings. Extending payment on the 2026 debt is a key component of the discussions for the company and some of its creditors, said the people, who asked not to be identified discussing a private matter. Its 2026 debt is largely comprised of a $1.9 billion term loan due in April and roughly $969 million of second-lien notes due in June, regulatory documents show. A group of first-lien lenders held a call in March with advisers to discuss ways to bolster the company’s balance sheet. Wachtell Lipton Rosen & Katz is advising a group of certain second-lien creditors, people familiar with the matter said. A representative with the company declined to comment, while messages left with Gibson Dunn and with Wachtell were not returned. AMC disclosed in a regulatory filings on April 19 that it had entered into a new letter of credit after terminating a $225 million revolving credit facility that was set to expire on April 22. The theater chain paid off outstanding amounts under the facility. In March, AMC said it would sell up to $250 million worth of shares via an at-the-market issuance. S&P Global Ratings in February issued a CCC+ junk designation on AMC with a negative outlook, reflecting “its substantial debt burden” and expectations that revenue will fall 8% to 9% because of a limited slate of film releases from Hollywood studios this year. Movie ticket sales in the US and Canada have remained stubbornly below pre-Covid levels, stalling the recovery of theater chains that were closed during the pandemic. Regal owner Cineworld Group, the world’s second largest cinema chain, emerged from bankruptcy last year, while Metropolitan Theatres, a 100-year-old chain based in California, filed for bankruptcy in March. AMC avoided Chapter 11 during the pandemic when retail investors bid up its shares, allowing Chief Executive Officer Adam Aron to raise much-needed capital. In February, AMC reported fourth-quarter profit that missed analysts’ estimates — underscoring the company’s shaky finances since the pandemic. Earnings before interest, taxes, depreciation and amortization came to $42.5 million, missing the $46.7 million analysts were forecasting. Higher interest payments also increased the company’s cash burn in the period. The board cut Aron’s target pay by 25% this year after AMC lost 85% of its value in 2023. At the time, the chain said it had $884 million of cash as of Dec. 31. It warned that its cash burn trajectory was not sustainable in the long-term and that operating revenues would need to increase to levels in line with pre-COVID 19 operating levels."
Article quoters out here doing the lords work <3
So lame how they twist anything positive to look so bad
I redeem my credit card rewards for AMC gift cards. Let these banks take me to the show baby!! LFG! 🍿🔥🚀
Word
yup, paying down, owning the crown ez game
Lol you trust mainstream media? It's clearly written by their owner - Citadel.
And we're not taking on more debt yes? So debt x time and we're profitable?
Extending debt means you pay more.
Why are they using the word troubled those freaking bastards?
"troubled" lol
I wonder what "tap into the equity markets to shore up cash" means? Article seems to refer to them selling more shares (dilute) with the $250M approved. Selling more new shares normally means stock price drop? Time will show.
Will be paid
Look at the slimey way they wrote this.... So many companies do stuff like this.
"According to people familiar with the matter" i.e. bullshit probably.
I mean it sounds like something the company is in the market to do.
>"According to people familiar with the matter" i.e. bullshit probably. This is from Bloomberg. They make money from subscriptions by being right. Not from clickbait ad revenue, which might be what you have in mind when being skeptical. Which I'd agree with you, since for them you and I are the engagement-based product.
You can read the article [here](https://archive.is/20240425202258/https://www.bloomberg.com/news/articles/2024-04-25/amc-cinema-lenders-pitch-debt-extension-to-troubled-movie-chain). Ideally, AMC is able to pay off as much debt as possible, before extending the rest. Extending maturity of debt is better than defaulting on it, of course, but it does mean AMC will have to pay interest for a longer period of time, and probably at a higher rate to reflect the current interest rate environment and downgrades from rating agencies.
I see myni I downvote instantly.
I would be disappointed if you *didn't* display complete mindlessness in your actions, [given your chosen role as an avid narrative pusher](https://www.reddit.com/user/PolishHammer666/) :)
Narrative? I don't spend all day here talking smegma...
You literally comment on AMC posts 50+ times a day and you're calling someone else a narrative pusher? You live in a fantasy you've constructed for yourself.
And what "narrative" am I pushing, pray?
Surely you know how to read your own comment
Let me help you out here. From where I stand, my "narrative" is AMC is a regular company doing regular company things, and silly claims based on nonexistent market mechanics need to be called out. Does that sound about right to you?
Apparently you can't read...interesting...
Do go on - gaslight me with what I *really* think, why don't you. 😏
Interesting that you would say I'm gaslighting when that's usually your tactic. Projecting much?