AMC Entertainment Jumps After 100M Secured-Debt Issuance
AMC issued $100 million in debt of five-year secured notes. to help finance operations through the pandemic.
In December the Leawood, Kan., company had secured a commitment for the debt financing from Mudrick Capital Management, the New York investment adviser.
Interest on the notes is 15% a year, payable in cash semiannually beginning July 15. For the first three interest periods after the issue date the company can choose payment-in-kind interest at a rate of 17% a year. After that interest must be paid in cash. The notes mature April 24, 2026.
Late last month, AMC filed with the SEC to offer as many as 50 million shares in an effort to avoid a bankruptcy filing.
That filing came on top of 200 million shares it filed for earlier in the month.