(Reuters) -AMC Leisure Holdings has reached an settlement with collectors to increase the maturity of as much as $2.45 billion of its debt, the theater chain stated on Monday, sending its shares up 12.6% in late afternoon buying and selling.
As a part of the deal, the corporate will switch sure leases, property, and associated property and rights for 175 theaters to a newly fashioned subsidiary, Muvico, together with mental property together with the AMC model title.
The settlement extends the maturities from 2026 to 2029 and past, and also will permit the corporate to scale back debt by $464 million by changing exchangeable notes into fairness.
The world’s largest theater chain had been grappling with the aftermath of the Hollywood strikes final 12 months that shut down productions and affected U.S. theater chains.
Nevertheless, CEO Adam Aron on Monday signaled a rebound.
“The field workplace challenges of the primary half of 2024 are actually within the rear-view mirror. The restoration momentum is again,” Aron stated in an announcement.
“We count on sturdy year-over-year field workplace development within the again half of 2024, persevering with into 2025 and 2026”.
AMC’s shares have additionally see-sawed over the previous few months after inventory influencer “Roaring Kitty” Keith Gill’s transient return in Might rekindled the “meme inventory” frenzy. The inventory has shed about 18% of its worth to date this 12 months to final shut.
The corporate stated on Monday it might additionally subject $1.2 billion of recent secured time period loans due 2029 in consideration for an open market buy of senior secured time period loans due 2026.
AMC had accomplished a collection of refinancing transactions in April and had amended its credit score settlement.
The corporate had diminished gross debt excellent by $516 million since September final 12 months, it stated in Might.
(Reporting by Arsheeya Bajwa in Bengaluru; Enhancing by Devika Syamnath and Sriraj Kalluvila)
