Evidently there continues to be demand for the debt of AMC Entertainment (NYSE: AMC). After announcing yesterday a $500 million senior secured note offering, the firm last night announced that it would be upsizing the offering to a whopping $950 million.
The upsized offering will see the company able to offset more near-term debt in exchange for longer term debt. The initial offering was earmarked to pay for the redemption of $500.0 million in 10.50% senior secured notes due 2025.
Now, the company will be able to redeem that debt, as well as $300.0 million in two series of 10.50% senior secured notes due 2026, and a further $73.5 million of 15%/17% Cash/PIK first lien senior secured notes due in 2026. The remainder of the new notes is earmarked to pay fees, costs, premiums, and expenses related to these redemptions.
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The new upsized notes are to be first lien senior secured notes due 2029. Most significantly, the debt bears interest at just 7.50%, a significant improvement over the current debt that is being redeemed by the company.
AMC Entertainment last traded at $15.42 on the NYSE.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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