AMC Entertainment had good news on Monday: lengthy discussions with lenders have resulted in joint refinancing transactions that extend the maturity of debt totaling $2.45 billion from 2026 through 2029 and beyond.
AMC Entertainment Signs Major Refinancing Agreement with Lenders
The company called the deals "transformative," saying they will strengthen its balance sheet, pave the way for future deleverage and align its capital structure with the industry's expected growth. The moves effectively give AMC "significant incremental financial headroom."
AMC’s finances have improved significantly as the theater market has taken off. But the chain has a lot of debt and, given the ups and downs of its exhibition business, large payments coming due in 2026 were a concern. CEO Adam Aron had assured Wall Street in recent months that negotiations were ongoing and that he was hopeful a deal would be reached.
The transactions include: $1.2 billion of new secured term loans due 2029 issued in exchange for an open market purchase of Senior Secured Term Loans due 2026, with the potential to extend an additional $800 million of 2026 maturities through 2029. Also, $500 million of 10%/12% Cash/PIK Toggle Second Lien Subordinated Secured Notes due 2026 exchanged for new secured term loans due 2029 or repurchased with proceeds of $414 million of new exchangeable notes due 2030.
