Home > Theatre giant AMC in advanced talks to refinance its debts

Theatre giant AMC in advanced talks to refinance its debts

AMC was one of the best-performing stocks last year, and the company is looking to refinance its debts.

Theatre giant AMC Entertainment is reportedly in talks to refinance its debts. According to the Wall Street Journal, the company is currently in talks with multiple interested parties to refinance its debts and lower its interest burden.

AMC was one of the best-performing stocks in 2021 after it became a favorite amongst retail traders. Following the emergence of GameStop, AMC became a meme stock and recorded huge gains last year.

The Wall Street Journal said the company is in advanced talks with multiple interested parties to refinance its loans, lower its interest rates and stretch out its maturities by several years.

This latest development comes after the company’s CEO Adam Aron commented earlier this month that AMC’s major goal for 2022 is to improve its financial position.

The company currently has more than $5 billion in debt. However, Aron said the company doesn’t have any maturities coming due until next year.

The shares of AMC are down by more than 1.5% today following the news of the debt refinancing. At press time, AMC is trading at $16.40.

AMC has experienced huge losses since the start of the year. The shares of the company have dropped by nearly 40% over the past three weeks, almost wiping out the gains it recorded last year.

The entertainment company was able to generate huge sums via stock sales last year, thanks to the massive rally caused by the meme stock frenzy. However, AMC failed to win shareholder approval to issue new equity in the company on two various occasions.

Hence, the company is unable to issue more shares to enable it clear some of its debts. AMC is one of the corporate entities currently accepting Bitcoin, Ether and a host of other cryptocurrencies as payments for its services.

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