(Bloomberg) — AMC Entertainment Holdings Inc. is in confidential talks with some of its lenders about reducing debt loads and extending maturities in the near term, according to people with knowledge of the matter.
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The discussions come as AMC, the world’s largest movie theater chain, faces a debt burden of about $4.5 billion in long-term loans. As of March 31, it had more than $2.8 billion in maturities through 2026, according to filings with regulators, including a $1.9 billion term loan and nearly $1 billion in second liens.
Negotiations are ongoing and no final decision has been made, the people said. A representative at AMC declined to comment, while messages left with Gibson Dunn & Crutcher, which represents the early lenders, were not returned.
Delaying maturities until 2026 has been a focus for the company and some of its creditors. AMC Chief Executive Officer Adam Aron said in a call to discuss quarterly results that the theater chain is working with its lenders to refinance its debt and “we are hopeful that we can do so on attractive terms.”
AMC took advantage of its short stock frenzy last month to reduce its debt, a playbook it previously used to help shore up liquidity. It said in a filing with the regulator that it had reached a private deal to exchange about $164 million of its 10% notes due 2026 for 23.3 million newly issued shares.
AMC, much of whose debt trades at distressed prices, has lowered maturities through other swaps and buybacks. The company is struggling as movie ticket sales remain stubbornly below pre-pandemic levels, and its shares have lost more than 25% this year.
–With help from Eliza Ronalds-Hannon.
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