AMC Entertainment Holdings, Inc. has made significant financial moves, as it has entered into a commitment letter with Deutsche Bank AG New York Branch for a new senior secured credit facility of up to $425,000,000 for its wholly-owned subsidiary Odeon Finco plc. This facility is intended to refinance Odeon's existing 12.750% senior secured notes due 2027 and pay related fees and expenses.
The new senior secured term loan due 2031 is expected to carry a fixed 10.50% interest rate, with a 2.00% original issue discount. This move is anticipated to strengthen the company's balance sheet, extend debt maturities, and reduce interest rates while allowing for a streamlined and simplified capital structure.
Notably, in connection with entering into the commitment letter, the company has decided not to proceed with its previously announced offering of senior notes and new term loan facility at this time.
AMC Entertainment Holdings, Inc. is the largest movie exhibition company in the United States, Europe, and worldwide, with approximately 855 theaters and 9,640 screens across the globe. The company has made a name for itself by deploying power-recliner seats, enhancing food and beverage choices, and offering premium large format experiences, among other innovations. Following these announcements, the company's shares moved 0.62%, and are now trading at a price of $1.61. Check out the company's full 8-K submission here.
