AMC Raises $917 Million to Stave Off Bankruptcy … for Awhile

The Joker’s expression in Harley Quinn sums up AMC’s movie theater business

Good to see that AMC got more creative (see: Yes, AOC: “Sex work is work” – Maybe AMC Should Be More Desperate)

For all of the gloomy predictions involving AMC — some they brought up themselves — they have made some creative financing moves to raise $917 million and push bankruptcy away for awhile.

The movie theater operator said it raised $917 million through a combination of equity and debt. On the equity side, AMC secured $506 million by issuing 164.7 million new shares along with the previously announced $100 million of additional first-lien debt and converting $100 million of second-lien debt into equity.

AMC Entertainment Scores Nearly $1 Billion in New Financing

This should propel AMC though a rocky 2021. We’re happy for them. I’d like to declare by 2022 life will be better in theaters, but there’s no strong evidence that will be the case. Sure, the vaccines are coming, but there are numerous issues (see: Large Amounts of Frontline Workers are Refusing To Take Vaccine, Citing Various Concerns and Washington State Now Has Confirmed Cases Of Faster-Spreading COVID-19 Variant B.1.1.7)

Not trying to be pessimistic here, just realistic. There’s nothing that’s happened the last year to indicate we are anywhere close to out of the woods. As I write this, movie theaters — including AMC — have been closed almost 9 of the last 12 months and are closed right now. They aren’t doing any significant business while the government forces them to stay closed.

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