AMC Entertainment (NYSE:AMC) news for Friday includes a major update on its plans to deal with the novel coronavirus.
An AMC Entertainment news release reveals that the company is planning to take on $500 million in first lien notes. These notes will be due in 2025 and are exempt from the registration requirements of the Securities Act of 1933.
According to AMC Entertainment, the company is planning to use the funds generated from these first lien notes to increase its liquidity. That will allow it to better operate during its shutdown due to the coronavirus.
The AMC Entertainment news also includes updates on how it is dealing with the coronavirus pandemic. The company already has all of its theaters shut down and is waiting for the right time to reopen them. It believes it can last until a partial reopening of theaters ahead of Thanksgiving.
AMC Entertainment is also withdrawing its guidance for the fiscal full year of 2020. That makes sense as many other companies are doing the same as the coronavirus plays havoc on the economy.
This new AMC Entertainment news comes just a few days after bankruptcy rumors started to spread. Insider sources behind the bankruptcy rumors claim that the company is bringing in Weil Gotshal & Manges to help it with the matter. However, it may be able to weather coronavirus avoid bankruptcy with its new $500 million loan.
AMC stock was up 31.76% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.