AMC Raises Money to Pay Off Old Debt and Refine Its Financing
AMC Entertainment, the world’s largest movie theater chain, has initiated a new private debt sale through its wholly‑owned unit Muvico. The company is offering $1.73 billion in first‑lien notes maturing in 2031, backed by AMC and its subsidiaries. In parallel, a $750 million loan will be secured.
How the Funds Will Be Used
- Redeem Older Debt – $400 million of 12.75% senior secured notes issued by Odeon Finco PLC (a subsidiary of Odeon Cinemas Group) will be fully redeemed.
- Replace Term Loan – The current term loan will be replaced with a fresh facility.
- Cover Transaction Costs – All associated fees and costs will be paid.
Odeon has issued a conditional notice to holders of the old notes, stipulating that redemption will occur only if AMC and its affiliates raise at least $2.48 billion in new debt before the redemption date. The company may waive this requirement at its discretion, but funding is not guaranteed.
Investor Eligibility & Regulatory Details
- Qualified Institutional Buyers under Rule 144A will receive the new notes.
- Outside the U.S., non‑U.S. investors may purchase under Regulation S.
- The notes are not registered securities and cannot be sold in the United States unless an exemption applies or a registration statement is filed.
Strategic Goals
AMC aims to:
- Streamline its debt structure and reduce interest costs.
- Maintain flexibility for future growth.
- Innovate the theater experience, introducing new seating, food options, and digital engagement tools.
The press release clarifies that this is not an offer to buy or sell securities and does not replace the official redemption notice sent to note holders. Forward‑looking statements are based on current information and may change as circumstances evolve.
