AMC Entertainment (NYSE:AMC) is in focus after the company announced that it had successfully completed its $350 million at-the-market (ATM) offering and had repurchased or exchanged debt for equity, resulting in a liability reduction of $62.28 million. The ATM offering resulted in the sale of 48 million shares at an average per share price of $7.29. AMC stock is down about 2% this morning.
“Thus far in 2023, AMC has raised $865 million of gross equity capital and lowered liabilities by approximately $440 million by reducing our corporate borrowings by approximately $350 million and repaying more than $90 million of COVID-19 related deferred rent liabilities,” said CEO Adam Aron. “Our commitment to strengthening the balance sheet is further evidenced by the more than $1 billion reduction in our corporate borrowings and deferred rent liabilities since December 31, 2020.”
AMC Stock: AMC Completes ATM Offering, Lowers Debt
AMC repurchased $50 million in principal of its 2026 10% second lien at an average discount of 19.67%. The company also exchanged $12.275 million in principal amount of its 2026 10% second lien notes for 1.6 million shares of AMC stock with an implied per share value of $8.19. Both of these figures include the accrued interest.
While AMC has strengthened its balance sheet, the company has also further diluted its shareholders through the ATM offering and the debt for equity exchange. According to MacroTrends, there were 105 million shares outstanding as of Dec. 31, 2022. As of Sept. 30, that number has increased by 55% to about 163 million. Meanwhile, AMC stock has plunged by nearly 80% this year.
In other news, the Taylor Swift: The Eras Tour movie was nominated for a Golden Globe Award in the new “Best Cinematic and Box Office Achievement” category. Other nominees also include Barbie and Oppenheimer. Qualifications for the nomination include at least $150 million in worldwide sales, of which $100 million is attributed to the U.S. or Canada.
Aron quickly took to X (formerly Twitter) to congratulate the pop singer and announced that her movie would play at many AMC theatres every day from Dec. 13 to Jan. 2.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
