(Reuters) – AMC Entertainment Holdings said on Monday it has reached an agreement with its creditors for debt maturities of up to $2.45 billion from 2026 to 2029 and beyond.
The deal will also allow AMC to reduce its debt by $464 million by converting the exchangeable notes into equity.
The company was grappling with the fallout from strikes in Hollywood last year, which shut down production and affected theater chains across the country.
“The box office challenges of the first half of 2024 are now behind us. Recovery momentum is returning. We expect strong year-over-year box office growth in the second half of 2024, continuing into 2025 and 2026,” CEO Adam Aron said in a statement.
Under the terms of the agreement, AMC will issue $1.2 billion of new secured term loans due 2029 in exchange for an open market purchase of senior secured term loans due 2026.
AMC and its units will also issue approximately $414 million of notes exchangeable for cash, with the proceeds of the offering being used to repurchase approximately $414 million of junior notes.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Devika Syamnath)
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