Oh darling readers, gather ’round because Hollywood Hrishita has some juicy tidbits to spill about AMC Theatres’ latest drama! 🍿
So, AMC Theatres, the so-called titan of the cinema universe, just pulled a fast one on its creditors. Yep, they’ve managed to kick their $4.5 billion debt can down the road for another three years. You know, like when you say you’ll start your diet next Monday, but we all know that Monday never comes! 😂
The financial wizards at AMC have managed to extend the maturity dates on a whopping $1.6 billion of their debt from 2026 to 2029 and even 2030. They’re even planning on buying back up to $800 million of their 2026 debt. Oh, and let’s not forget the $414 million of new debt they’re issuing for good measure. Because why not, right? 🙄
In a move that screams, “Desperate times call for desperate measures,” AMC has also shuffled 175 of its theatres into a new subsidiary, Muvico. It’s like when you move your mess from one room to another and call it "cleaning." But hey, if it works, it works!
And here comes the cherry on this financial sundae: Chairman and CEO Adam Aron is dancing in the streets (probably). He’s singing praises about how their lenders have shown "unwavering support." Oh Adam, you smooth talker, you! He’s convinced that the box office slump of 2024 is just a bad dream and that the future is all sunshine and rainbows. He’s betting big on upcoming releases like “Deadpool & Wolverine” to keep the cash registers ringing.
Oh, but let’s not forget the little detail about AMC’s debt woes being a self-inflicted wound. Aron’s ambitious acquisition spree since 2016 turned AMC into a global behemoth, snapping up Carmike Cinemas, Odeon & UCI, and Nordic Cinema Group. But guess what? Not all those deals were golden goose eggs. 🥚
Remember that wild 2021 “meme stock” craze? AMC’s stock price skyrocketed thanks to a bunch of Reddit-fueled retail investors more interested in trolling hedge funds than actually caring about AMC’s movies. That little miracle allowed AMC to renegotiate some of its massive debts, but alas, the stock price has plummeted back to a humbling $5.50.
Aron still credits those retail investors for saving AMC’s hide. “Retail shareholders saved AMC,” he declared earlier this year. Well, Adam, let’s hope they stick around because this roller coaster ride is far from over.
Moral of the Story: When life gives you $4.5 billion in debt, just shuffle it around like a bad Bollywood plot twist and hope for a blockbuster sequel! 🎬✨
