AMC Entertainment Holdings, Inc. Exercises Option to Repurchase Some of its First Lien Debt

Rhea-AI Summary

AMC Entertainment Holdings has repurchased $35 million of its high-cost 15% cash / 17% payment-in-kind Toggle First Lien Secured Notes due 2026, for a total cost of $41.3 million. This move will reduce AMC's annual interest expenses by $5.25 million. CEO Adam Aron emphasized this repurchase as part of a broader strategy to enhance liquidity and reduce deferred rent obligations, while also improving operational results. AMC's innovative offerings include alternative content, cryptocurrency acceptance, and a major marketing campaign, signaling confidence in a robust movie slate ahead.

Positive

• Repurchase of $35 million in high-cost debt reduces annual interest expenses by $5.25 million.
• Management indicates a strong commitment to improving financial position and operational results.
• Innovative strategies may enhance customer engagement and revenue potential.

Negative

• None.

LEAWOOD, Kan.--(BUSINESS WIRE)-- AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the Company”), announced today that it has exercised an option to repurchase $35 million of its 15% cash / 17% payment-in-kind (“PIK”) Toggle First Lien Secured Notes due 2026. The total cost to exercise this repurchase option was $41.3 million, including principal and accrued and unpaid interest. As a result of this debt reduction, AMC’s annual interest cost has been reduced by $5.25 million.

“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,” said Adam Aron, AMC’s Chairman and CEO. “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.”

Aron concluded, “At AMC our recent innovations include showing alternative content at our theatres such as exclusive musical experiences, and WWE and UFC programming; our commitment to accept cryptocurrency starting with Bitcoin, Ethereum, Litecoin and Bitcoin Cash before year-end, as well as exploring the possibility of accepting Dogecoin; and our unprecedented national multi-media marketing campaign featuring Academy Award winner Nicole Kidman. This all comes at a time when we believe that the upcoming movie slate is incredibly exciting, and studios currently seem to be re-committing to an exclusive theatrical window.”

About AMC Entertainment Holdings, Inc.

AMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 950 theatres and 10,500 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying its Signature power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty and subscription programs, web site and mobile apps; offering premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming. For more information, visit www.amctheatres.com.

Website Information

This press release, along with other news about AMC, is available at www.amctheatres.com. We routinely post information that may be important to investors in the Investor Relations section of our website, www.investor.amctheatres.com. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD, and we encourage investors to consult that section of our website regularly for important information about AMC. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document. Investors interested in automatically receiving news and information when posted to our website can also visit www.investor.amctheatres.com to sign up for email alerts.

Category: Company Release

View source version on businesswire.com: https://www.businesswire.com/news/home/20210930006003/en/

INVESTOR RELATIONS:

John Merriwether, 866-248-3872

InvestorRelations@amctheatres.com

MEDIA CONTACTS:

Ryan Noonan, (913) 213-2183

rnoonan@amctheatres.com

Source: AMC Entertainment Holdings, Inc.

FAQ

What amount of debt did AMC repurchase?

AMC repurchased $35 million of its high-cost debt.

How much did AMC spend to exercise the repurchase option?

AMC spent a total of $41.3 million to exercise the repurchase option.

How much will AMC save in annual interest costs from the debt repurchase?

AMC will save $5.25 million in annual interest costs due to the debt repurchase.

What new payment methods is AMC exploring?

AMC is exploring accepting cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

What new initiatives is AMC implementing to attract customers?

AMC is showing alternative content like exclusive musical experiences and has launched a national marketing campaign.