AMC in reportedly in advanced talks to refinance debt
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A man is seen walking past AMC Georgetown 14 Theatres, Washington, DC, on June 3, 2021.
Mandel Ngan | AFP | Getty Images
AMC EntertainmentAccording to The Wall Street Journal, the company is moving quickly to implement its plans to repay its debt.
According to the publication, movie theater chain is in advanced refinancing talks with multiple interested partiesIt will reduce its interest rates and increase the maturity of the company’s debt by several years. Following comments by Adam Aron, CEO earlier in the month, he stated that one of his main goals for 2022 would be to improve the financial situation.
CNBC did not receive a response from AMC immediately to its request for comment.
AMC has a total debt of over $5 billion. However, Aron repeatedly informed investors that AMC does not have maturities due before 2023.
AMC’s stock price has fallen more than 40% in the past year. This is a reverse of major gains which helped AMC avoid bankruptcy. Retail investors who closely followed AMC stock on social media platforms such as Reddit last year helped to boost its stock value.
AMC became caught up in the meme-stock trading frenzy. AMC was able, in the early 2021s, to replenish its funds through stock sales, but failed twice to gain shareholder approval to issue additional equity. The company can’t issue any more shares to reduce its debt.
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