AMC Entertainment Holdings has finalized a significant debt refinancing agreement aimed at extending up to $2.45 billion of debt maturities originally due by 2026 to new terms that stretch out as far as 2029 and beyond.
Announced on Monday, this restructuring initiative is designed to provide AMC, the largest movie theater chain, with greater financial flexibility to manage its long-term borrowings, which total approximately $4.5 billion. CEO Adam Aron expressed confidence in the company’s future trajectory following the agreement, describing it as a strong vote of confidence from lenders.
Under the terms of the refinancing plan outlined in a July 22 SEC filing, AMC will convert around $1.2 billion of near-term loans due in 2026 into new secured term loans maturing in 2029. An additional $800 million of 2026 debt maturities may also be extended to 2029, subject to further negotiations.
To facilitate this exchange, AMC has pledged approximately 175 theaters and specific intellectual property assets, including the AMC brand name, as collateral. The agreement includes provisions for AMC to retain operational use of the pledged assets and intellectual property through licensing agreements.
AMC’s financial restructuring comes after a turbulent period during the pandemic, when the company faced severe financial strain and nearly filed for bankruptcy. The stock’s resurgence, driven by retail investors on online platforms, provided a lifeline for AMC, bolstering its financial resilience and diversifying revenue streams.
Despite these challenges, CEO Adam Aron has been proactive in reducing debt and fortifying the company’s balance sheet. Previous capital raises have been instrumental in stabilizing operations amid ongoing disruptions to Hollywood’s movie release calendar and industry-wide challenges.
The refinancing deal underscores AMC’s commitment to navigating its debt obligations strategically while positioning itself for recovery in the evolving entertainment landscape.
