AMC Entertainment Repurchases Debt

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AMC Entertainment Holdings, Inc. announced that it has exercised its option to repurchase $35 million of its 15% cash / 17% PIK First Lien Secured Notes due 2026. The total cost to exercise the repurchase option, including to pay for accrued interest, was $41.3 million. As a result of the debt reduction, the Company will save about $5.3 million annually on interest expense. We note that $35 million represents less than 1% of the Company’s $5.58 billion debt load, as of 2Q21.

Commenting on the development, CEO Adam Aron stated, “The repurchase of some of our highest cost debt is one of the many steps that we are taking to optimally position AMC for the future, In addition to reducing our interest-bearing debt, we are also using our enhanced liquidity and improving business fundamentals to make meaningful reductions in deferred rent obligations. At the same time, we continue to take steps to improve our operating results and we are capitalizing on opportunities to grow and enhance our business.”

How will this impact the market value of AMC Net Lease properties?

To learn more, contact Michael Salafia, Net Lease Advisor at Marcus & Millichap.

Michael Salafia

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