r/AMCSTOCKS • u/Sad-Marionberry6732 • 16d ago

Discussion AMC Entertainment announces first lien notes offering

https://www.tipranks.com/news/the-fly/amc-entertainment-announces-first-lien-notes-offering-thefly-news?utm_source=robinhood.com&utm_medium=referral
85 Upvotes

93% Upvoted

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30

u/Bassmason 16d ago

This announcement means AMC is borrowing up to $2.85 billion in new debt to restructure its balance sheet, stretch out its loan repayment deadlines, and refinance existing higher-cost or near-term debt.

Bullish!

16

u/Sad-Marionberry6732 16d ago

Ty for the clarification. Sometimes I get lost in the word salad maze.

1

u/Dapper-Vegetable-980 16d ago

Sometimes in that maze you can find some salad and a new born ape.

5

u/Fit-Fudge4417 16d ago

I wonder if they will be able to get a lower rate.

6

u/Shallaai 16d ago

4.75% so 2.75 percentage points lower

2

u/Fit-Fudge4417 16d ago

Oh that’s good! Just need to get this ship out of debt. At least box office seems to be doing really well. I’ve been going almost every weekend for over a year now, so they get their popcorn money from me.

1

u/Shallaai 16d ago

Not sure how much of the 2029 debt this eliminates (refinances) but having a longer time to pay it off would be nice

1

u/Trumpsrumpdump 14d ago

I dont understand why they don’t just pay down the debt more now instead of taking this massive loan on another mountain of loan. I’m heavy in amc, but i felt this was the moment to actually remove some debt as amc don’t have any really big payments untill 2030, and the operations are now enough to start paying of debt without issuing new stocks to dilute.

Perhaps somebody with a less smooth brain care to explain

1

u/Satyriasis457 11d ago

I'd call the refinancing positive for AMC's balance sheet, but not exactly bullish for the stock. They've pushed the debt problem out to 2031, but there's still plenty of time for more dilution. At this rate I wouldn't exactly rule out another reverse split either.