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25 Jan 2021 | 15:18

AMC Entertainment surges as it wards off bankruptcy

(Sharecast News) - Shares of AMC Entertainment surged on Monday after the Odeon owner said it had secured $917m of new equity and debt capital that should enable it to weather "this dark coronavirus-impacted winter". The company has raised $506m of equity by issuing 164.7m new shares, having previously announced $100m of additional first-lien debt and the concurrent issuance of 22m new common shares to convert $100m of second-lien debt into equity. AMC has also executed commitment letters for $411m of new debt through mid-2023.

The cinema chain said it estimates that its financial runway has been extended "deep into 2021".

"AMC also is presuming that it will continue to make progress in its ongoing dialogue with theatre landlords about the amounts and timing of owed theatre lease payments," it said.

Chief executive and president Adam Aron said: "After securing more than $1bn of cash between April and November of 2020, through equity and debt raises along with a modest amount of asset sales, we are proud to announce today that over the past six weeks AMC has raised an additional $917m capital infusion to bolster and solidify our liquidity and financial position.

"This means that any talks of imminent bankruptcy for AMC is completely off the table."

At 1515 GMT, the shares were up 32% at $4.63.
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