AMC Entertainment just published a press release on Wednesday announcing it strengthened its balance sheet once again.
The company repurchased approximately $72.5 million of its 10% second lien debt for $50 million.
This represents a 31% discount.
As a result of this debt reduction, AMC’s annual interest cost will be reduced by $7.25 million.
Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.
Let’s dive right into it!
Join the newsletter to become part of an activist group fighting for market transparency!
Receive weekly market news to stay up to date.
Adam Aron comments on AMC debt repurchase
AMC CEO Adam Aron had this to say on Wednesday:
“Thanks to our passionate and supportive shareholders who helped us build a war chest of cash, and in light of the continued recovery of theatrical exhibition, we are very pleased to announce that the Company was able to repurchase more than $72 million of second lien debt at a significant and beneficial discount.”
The CEO added, “This action is one more step along our recovery glidepath. We will continue to seek creative and meaningful strategies to further strengthen our balance sheet and create value for our shareholders in the future.”
AMC Entertainment announced during Q1 announcements that it repaid $45 million of deferred rent reducing their balance to approximately $272 million.
They plan to reduce the deferred rent by another $125 million by the end of the year.
In Q1 alone, AMC seated more than 39 million guests, it had seated only 7 million guests in Q1 of 2021.
Q2 earnings will be released on Thursday, August 4th.
Recent AMC news
AMC CEO Adam Aron recently posted on Twitter, “Yet another promise kept. We now partner with Uber Eats. A pilot test to deliver movie theatre treats, especially AMC perfectly popcorn, to the home.”
The world’s largest movie theatre chain is partnering up with Uber Eats to deliver AMC Perfectly Popcorn in the Chicago and Kansas area.
This initiative will test the project before catering to the states.
For more market news and updates, join the newsletter to receive new content straight to your inbox.