AMC Entertainment Holdings, Inc. Raises $162 Million Through Sales of AMC Preferred Equity Units (“APE”) Since Launching Its At-The-Market Program and Provides Business Update
December 19 2022 - 7:35AM
Business Wire
- Enhances liquidity by raising more than $162 million of equity
capital since the inception of the APE At-The-Market program.
- Strengthens balance sheet by repurchasing approximately $36
million in principal amount of debt at an average discount of
approximately 61%, taking total principal debt reduction for the
fourth quarter to approximately $107 million and the total
principal debt reduction for 2022 to approximately $180 million
after considering the previously announced Odeon debt
refinancing.
- Expects liquidity as of December 31, 2022 to be between $725
million and $825 million, including $211.2 million of undrawn
capacity under the Company’s revolving credit facility and after
taking into consideration debt repurchases. This implies an
improvement in the net decrease in cash and cash equivalents and
restricted cash of between $110 million and $210 million compared
to the third quarter of 2022.
- Announces the acquisition of yet another former Arclight
theatre in the Boston, Massachusetts market and further potential
industry consolidation opportunities.
AMC Entertainment Holdings, Inc. (NYSE: AMC and APE) (“AMC” or
“the Company”) today provided a business update for the fourth
quarter ending December 31, 2022.
- As of December 19, 2022, since the inception of its APE
At-The-Market Program (“ATM”) offering, AMC has strengthened its
liquidity position by raising approximately $162.4 million of gross
cash proceeds before fees and commissions, through the sale of
125.9 million AMC Preferred Equity Units. During the fourth quarter
of 2022 to date, AMC has raised approximately $153.2 million of
gross cash proceeds before fees and commissions, through the sale
of 123.2 million AMC Preferred Equity Units.
- During the fourth quarter of 2022, AMC used a portion of the
net proceeds from its ATM to repurchase approximately $30.7 million
principal amount of its 10% Second Lien Debt due 2026 at an average
discount of approximately 60% and approximately $5.25 million
principal amount of its 6.125% Senior Subordinated Notes due 2027
at an average discount of 70%.
- During the fourth quarter of 2022, as a result of the debt
repurchases and the previously announced Odeon debt refinancing,
AMC reduced the principal amounts of its debt by approximately $107
million, bringing the total principal debt reduction during 2022 to
approximately $180 million.
- Based on the success of AMC’s ATM program, its operating
performance to date, and its effective cash management efforts,
AMC’s liquidity position (cash, cash equivalents and undrawn
revolving credit facility capacity) as of December 31, 2022 is
currently estimated to be between $725 and $825 million, after debt
repurchases and including $211.2 million of undrawn capacity under
the Company’s revolving credit facility, subject to operating
performance during the remainder of the holiday period in 2022 and
the timing of landlord concessions. This implies an improvement in
the net decrease in cash and cash equivalents and restricted cash
of between $110 million and $210 million compared to the third
quarter of 2022.
- AMC is announcing the acquisition of the 13-screen former
Arclight Cinemas theatre located at The Hub on Causeway, the
large-scale mixed-use development at North Station, in Boston,
Massachusetts. This theatre is brand new, having opened in December
2019 and closed only three months later due to COVID-19.
Adam Aron, Chairman and CEO of AMC Entertainment commented,
“Even though the APE units and our common shares are economically
equivalent, it is disappointing that the APE units have since
inception consistently traded at a significant discount to the AMC
common shares. While the trading prices of the two securities seem
to reflect distinct market and trading dynamics, the APEs are
serving precisely the purpose originally intended for them. At a
time when one or more of our competitors have been facing
potentially devastating liquidity challenges, by contrast during
the past 90 days, AMC has been able to raise $162 million of
additional cash through the sale of equity thereby improving our
own liquidity position markedly. In addition, AMC reduced debt for
the third time this year, including most recently by buying back
debt at a substantial 61% discount and is able to contemplate
various opportunities to add theatres to our fleet including just
having successfully secured for AMC the attractive former Arclight
Boston.”
Aron added, “Our outlook for the industry is positive as we
expect the box office will be larger in 2023 than in 2022. Our
liquidity position is strong, as we continue to demonstrate our
ability to raise cash, thereby strengthening our balance sheet. We
also continue to enhance our footprint by acquiring superb theatres
without significant capital outlays while at the same time exiting
under-performing locations. For so many reasons, we believe the
future remains bright for AMC.”
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the United
States, the largest in Europe and the largest throughout the world
with approximately 940 theatres and 10,500 screens across the
globe. AMC has propelled innovation in the exhibition industry by:
deploying its Signature power-recliner seats; delivering enhanced
food and beverage choices; generating greater guest engagement
through its loyalty and subscription programs, web site and mobile
apps; offering premium large format experiences and playing a wide
variety of content including the latest Hollywood releases and
independent programming. For more information, visit
www.amctheatres.com.
Website Information
This press release, along with other news about AMC, is
available at www.amctheatres.com. We routinely post information
that may be important to investors in the Investor Relations
section of our website, www.investor.amctheatres.com. We use this
website as a means of disclosing material, non-public information
and for complying with our disclosure obligations under Regulation
FD, and we encourage investors to consult that section of our
website regularly for important information about AMC. The
information contained on, or that may be accessed through, our
website is not incorporated by reference into, and is not a part
of, this document. Investors interested in automatically receiving
news and information when posted to our website can also visit
www.investor.amctheatres.com to sign up for email alerts.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the federal securities laws. In many cases, these
forward-looking statements may be identified by the use of words
such as “will,” “may,” “should,” “believes,” “expects,”
“anticipates,” “estimates,” “intends,” “projects,” “goals,”
“objectives,” “targets,” “predicts,” “plans,” “seeks,” and
variations of these words and similar expressions. Examples of
forward-looking statements include statements we make regarding the
impact of COVID-19, future attendance and box office levels, our
liquidity, and the potential conversion of our AMC Preferred Equity
Units. Any forward-looking statement speaks only as of the date on
which it is made. These forward-looking statements may include,
among other things, statements related to AMC’s current
expectations regarding the performance of its business, financial
results, liquidity and capital resources, and the impact to its
business and financial condition of, and measures being taken in
response to, the COVID-19 virus, and are based on information
available at the time the statements are made and/or management’s
good faith belief as of that time with respect to future events,
and are subject to risks, trends, uncertainties and other facts
that could cause actual performance or results to differ materially
from those expressed in or suggested by the forward-looking
statements. These risks, trends, uncertainties and facts include,
but are not limited to, risks related to: AMC’s ability to obtain
additional liquidity, which if not realized or insufficient to
generate the material amounts of additional liquidity that will be
required unless it is able to achieve more normalized levels of
operating revenues, likely would result with AMC seeking an
in-court or out-of-court restructuring of its liabilities; the
potential impact of AMC’s existing or potential lease defaults; the
impact of the COVID-19 virus on AMC, the motion picture exhibition
industry, and the economy in general; the seasonality of AMC’s
revenue and working capital; the continued recovery of the North
American and international box office; AMC’s significant
indebtedness, including its borrowing capacity and its ability to
meet its financial maintenance and other covenants; motion picture
production and performance; AMC’s lack of control over distributors
of films; intense competition in the geographic areas in which AMC
operates; increased use of alternative film delivery methods or
other forms of entertainment; shrinking exclusive theatrical
release window; AMC Stubs A-List not meeting anticipated revenue
projections; general and international economic, political,
regulatory and other risks; limitations on the availability of
capital; AMC’s ability to refinance its indebtedness on favorable
terms; availability of financing upon favorable terms or at all;
risks relating to impairment losses, including with respect to
goodwill and other intangibles, and theatre and other closure
charges; supply chain disruptions, labor shortages, increased cost
and inflation; and other factors discussed in the reports AMC has
filed with the SEC. Should one or more of these risks, trends,
uncertainties, or facts materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those indicated or anticipated by the forward-looking
statements contained herein. Accordingly, you are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date they are made. Forward-looking statements
should not be read as a guarantee of future performance or results
and will not necessarily be accurate indications of the times at,
or by, which such performance or results will be achieved. For a
detailed discussion of risks, trends and uncertainties facing AMC,
see the section entitled “Risk Factors” in AMC’s Form 10-K for the
year ended December 31, 2021 and Form 10-Q for the quarter ended
September 30, 2022 filed with the SEC, and the risks, trends and
uncertainties identified in its other public filings. AMC does not
intend, and undertakes no duty, to update any information contained
herein to reflect future events or circumstances, except as
required by applicable law.
Category: Company Release
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INVESTOR RELATIONS: John Merriwether, 866-248-3872
InvestorRelations@amctheatres.com
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