AMC Entertainment Holdings, Inc. Repurchases $72.5 Million of Its Second Lien Debt at a 31% Discount

Rhea-AI Summary

AMC Entertainment Holdings, Inc. (NYSE: AMC) announced the repurchase of approximately $72.5 million of its 10% Second Lien Subordinated Secured Notes due 2026 for $50 million, a 31% discount to face value. This strategic move will reduce AMC's annual interest costs by $7.25 million. CEO Adam Aron expressed gratitude for shareholder support that facilitated this buyback, indicating it as a step in their recovery strategy to strengthen the balance sheet and enhance shareholder value.

Positive

• Debt repurchased at 31% discount, enhancing financial flexibility.
• Annual interest cost reduced by $7.25 million, improving net income potential.

Negative

• None.

LEAWOOD, Kan.--(BUSINESS WIRE)-- AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the Company”), the largest theatrical exhibition company in the world, announced today that during the second quarter ended June 30, 3022 it strengthened its balance sheet by repurchasing approximately $72.5 million of its 10.0% Second Lien Subordinated Secured Notes due 2026, through the open market, for approximately $50.0 million, representing a 31% discount to the face value of the debt. As a result of this debt reduction, AMC’s annual interest cost will be reduced by $7.25 million.

Commenting on the debt repurchase, Adam Aron, AMC Chairman and CEO said, “Thanks to our passionate and supportive shareholders who helped us build a war chest of cash, and in light of the continued recovery of theatrical exhibition, we are very pleased to announce that the Company was able to repurchase more than $72 million of second lien debt at a significant and beneficial discount.”

Aron added, “This action is one more step along our recovery glidepath. We will continue to seek creative and meaningful strategies to further strengthen our balance sheet and create value for our shareholders in the future.”

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, website, 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/20220720005029/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 is the significance of AMC's recent debt repurchase?

AMC's debt repurchase of $72.5 million at a 31% discount will lower its annual interest costs by $7.25 million, strengthening its financial position.

How much debt did AMC repurchase and at what discount?

AMC repurchased $72.5 million of its debt for $50 million, achieving a 31% discount.

What impact will the debt repurchase have on AMC's shareholders?

The repurchase is expected to enhance shareholder value by lowering interest expenses and improving financial stability.