Leading movie theater operator AMC Entertainment has wrapped a $350 million at-the-market equity offering and reduced its debt by $62 million.
The transaction was announced after the close of trading Monday. AMC had announced the equity offering in November.
AMC said it raised $350 million of new equity capital, before commissions and fees, through the sale of about 48 million shares, at an average price of about $7.29 per share.
Exhibitors are facing a difficult stretch over the next few months due to a squeeze on the supply of studio films. Confronting the dual strikes by writers and actors, studios pushed a number of 2023 and early 2024 releases to later dates given production and promotion challenges. Theaters, though, depend on event titles and are heading toward a January period with only a handful of wide releases. Unlike past Christmases, when franchise titles like Avatar: The Way of Water drove significant box office, this year’s late-December slate has mainly Wonka and the Aquaman sequel as audience draws.
“Successfully raising an additional $350 million of equity capital and reducing debt by more than $62 million in a single month underscores our continued commitment to strengthen our balance sheet by bolstering liquidity and methodically reducing debt levels,” CEO Adam Aron said.
In 2023 to date, Aron said, AMC has raised $865 million of gross equity capital. It has also lowered liabilities by approximately $440 million by reducing our corporate borrowings by about $350 million and repaying more than $90 million of Covid-related deferred rent liabilities.
“Through methodically fortifying our financial position as we progress along our recovery trajectory, we ensure our ability to manage through industry challenges, including the ongoing impact of the Hollywood strikes earlier this year, and position AMC to thrive in the future as we deliver value to our shareholders,” Aron added.