A person walks previous the AMC Georgetown 14 Theatres in Washington, DC on June 3, 2021.
Mandel Ngan | AFP | Getty Pictures
AMC Entertainment is fast-tracking its plan to refinance its debt, based on a brand new report from The Wall Avenue Journal.
The publication mentioned the movie theater chain is in advanced refinancing talks with multiple interested parties to decrease its curiosity burden and stretch out its maturities by a number of years. This follows feedback made by CEO Adam Aron earlier this month that certainly one of his main objectives for 2022 was to enhance the corporate’s monetary place.
Representatives from AMC didn’t instantly reply to CNBC’s request for remark.
AMC’s whole debt is north of $5 billion, however Aron has repeatedly suggested buyers that it doesn’t have any maturities coming due till 2023.
On Tuesday, AMC shares had been down greater than 4% on the debt refinancing information, amid robust selling in the broader market.
AMC’s push to shore up its steadiness sheet comes as the corporate’s inventory worth has slipped greater than 40% for the reason that starting of the yr, reversing main good points that helped AMC stave off chapter final yr. AMC’s inventory worth was bolstered in 2021 by retail buyers who adopted the inventory intently on social media platforms comparable to Reddit.
Caught up within the meme inventory buying and selling frenzy, AMC was in a position to refill its coffers by way of inventory gross sales in early 2021, however twice did not win shareholder approval to difficulty new fairness within the firm. This implies the corporate will not be in a position to difficulty extra shares to assist pay down its debt.