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Troubled AMC Theaters Plans to Raise $500 Million Via Offering – Variety

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Dealing with the prospect of staying shut for a number of extra months as a result of coronavirus pandemic, embattled exhibitor AMC Leisure has unveiled plans to boost $500 million in new debt to enhance its steadiness sheet.

The funds from the senior notes providing, which must be repaid in 2025, ought to be sufficient to maintain the corporate going till the center of the summer time, AMC stated in a submitting Thursday.

“Attributable to important actions taken by the corporate, we consider our present money steadiness is adequate to resist a worldwide suspension of operations till a partial reopening in July,” AMC stated. “After giving impact to the proposed notes providing, we consider the corporate could have adequate liquidity to resist a worldwide suspension of operations till a partial reopening forward of Thanksgiving.”

AMC’s inventory was up 37% to $3.35 a share in after hours buying and selling Thursday as traders reacted to information of the providing and the White Home saying specifics of plans to re-open film theaters.

AMC stated the pandemic has had, and is prone to proceed to have, a “extreme and unprecedented” affect on the world and warned that the closures could prolong previous June.

“Throughout this era, the corporate is producing successfully no income. The corporate will evaluate previous to the top of June 2020, at the side of the potential lifting of assorted authorities working restrictions, whether or not it ought to prolong such suspension with respect to some or all of our theaters. There isn’t a assure nevertheless, that any such government-imposed restrictions could also be lifted, and such restrictions could also be additional prolonged past June 2020.”

AMC additionally disclosed that as of March 31, it had $299.eight million in money available, together with borrowings of $215.zero million drawn from a revolving line of credit score facility, and one other £89.2 million ($111.four million) tapped from one other revolving credit score facility for Odeon Cinemas within the U.Okay.

Analysts consider that the chain may be on the point of submitting for chapter. The probability of a chapter reorganization doesn’t imply that AMC’s 634 places within the U.S. and Canada — and greater than 1,000 venues worldwide — shall be closing their doorways for good.

Wall Road analysts final week downgraded the corporate’s inventory from “impartial” to “promote,” signaling that the worth of the nation’s largest theater chain is anticipated to decrease in coming months as there’s no clear path ahead for multiplexes determined to reopen.

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