AMC Seizes on Meme Stock Moves to Cut $164 Million of Debt
- Company has been chipping away at 2026 debt maturity
- Shares slumped in pre-market trading after deal was announced
This article is for subscribers only.
AMC Entertainment Holdings is taking advantage of its meme stock rally to reduce its debt, revisiting a playbook that helped it shore up liquidity in 2021.
The movie theater chain said in a regulatory filing that it reached a private deal to swap about $164 million of its 10% notes due 2026 for 23.3 million shares of newly-issued stock. Based on the principal exchanged and accrued interest, the new stock had a value of $7.33 per share. AMC shares closed on Tuesday at $6.85.