An ad hoc group holding 73% of its $2.3 billion in senior subordinated notes agreed to let AMC “restructure a substantial majority of these debt securities,” the company said in a statement.
Under the terms the face amount of AMC’s total debt would be reduced by between $460 million and $630 million, depending upon how many other lenders enter the exchange, the company said.
In a statement Friday, the company explained that it was “offering to issue, in a private offering to eligible noteholders, new 10%/12% cash/payment-in-kind toggle second-lien secured notes due 2026 in exchange for the existing subordinated notes.”
Also Monday, AMC unveiled an agreement to restructure $600 million of convertible notes issued in 2018 to Silver Lake.
Along with the exchange, Silver Lake has agreed to provide AMC with $100 million in additional cash through incremental first-lien financing.
President and Chief Executive Adam Aron said in a statement that the financial efforts come on top of AMC's "significantly reducing operating costs and capital expenditures, working with theater landlords to abate and defer rents, raising $500 million of new public debt in April and developing new health and cleaning protocols with the best global experts to keep our theaters safe."
AMC closed its theaters in March, due to the coronavirus pandemic. It plans to begin reopenings July 30.
AMC shares at last check stood at $4.75, up 3.7%. They have dropped 36% year to date.