AMC Entertainment leaps after issuance of $ 100 million secured debt

AMC Entertainment Shares (AMC) – Get a report jumped further on Tuesday after the theater operator said it was issuing $ 100 million in five-year guaranteed tickets.

AMC shares at last check jumped 27% to $ 2.95. It traded as high as $ 3.20 on Tuesday.

In December, the Leawood-based company, Kan., Secured a debt financing commitment from Mudrick Capital Management, the New York-based investment adviser.

Interest on the notes is 15% per annum, payable in cash semi-annually starting July 15. For the first three interest periods after the issue date, the company may choose payment in kind interest at the rate of 17% per annum. After that, the interest must be paid in cash. The notes mature on April 24, 2026.

At the end of last month, AMC filed an application with the SEC to offer up to 50 million shares in an attempt to avoid a bankruptcy filing.

That deposit was in addition to the 200 million shares he had deposited earlier in the month.

Risks rated by AMC include “our ability to obtain additional liquidity, which, if not realized or is insufficient to generate the significant amounts of additional liquidity that will be required until we are able to reach more normalized operating income levels, would likely require us to seek a judicial or extrajudicial restructuring of our liabilities. “

AMC has said it needs $ 750 million.

“And in the event of such a future liquidation or bankruptcy proceeding, the holders of our common stocks and other securities would likely suffer a total loss of their investment,” he said on the file.

The coronavirus pandemic has taken a heavy toll on AMC and other leisure businesses, as lockdowns have kept people at home and severely reduced business revenues. AMC stock has fallen more than 75% in the past 12 months.

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