November 2, 2020
AMC Entertainment Nov. 2 disclosed it is selling 20 million shares of Class A common stock to help the financially struggling theater chain generate $47.7 million in cash. The world’s largest theatrical chain said it would use the funds from the sale for general corporate purposes, which could include the repayment, refinancing, redemption or repurchase of existing indebtedness or capital stock, working capital, capital expenditures and other investments.
AMC has seen its business virtually shut down since mid-March due to the coronavirus pandemic. It is now operating more than 80% of its domestic screens with social distancing and reduced seating capacity — but has warned it could run out of cash by the end of the year without fiscal assistance.
AMC, which will report third-quarter fiscal results after the market closes, over the summer restructured its long-term debt with lenders, generating $200 million in cash. The company also sold nine theaters in the Baltics for $77 million, while selling another $100 million in bond debt.