AMC Entertainment enters transaction support agreement with creditor groups

AMC Entertainment (AMC) announced that it has entered into a transaction support agreement with key creditor groups, including certain holders representing approximately 62% of its 7.5% senior secured notes due 2029, certain holders representing approximately 76% of Muvico, LLC’s 6.00%/8.00% senior secured exchangeable notes due 2030 and certain lenders representing approximately 14% of AMC’s term loans outstanding under its existing credit agreement. With the exception of the equitization, term loan lenders representing at least 50.1% of AMC’s term loans outstanding under its credit agreement will be required to consent to the effectiveness of the transactions. Approximately $223.3M of new money financing that will be used to refinance debt maturing in 2026 and provide incremental liquidity. The immediate conversion of at least $143M of 6.00%/8.00% senior secured exchangeable notes due 2030, with the potential to equitize up to a total of $337M of such notes over time. A full resolution of litigation with certain holders of AMC’s 7.5% senior secured notes due 2029. The consenting 7.5% noteholders will provide approximately $223.3M of incremental new money financing and will exchange $590M of existing 7.5% Notes due 2029 for a total of $825.1M aggregate principal amount of new Senior Secured Notes due 2029. The consenting exchangeable noteholders will receive 79.8M shares of AMC Class A common stock in exchange for at least $143 million of 6.00%/8.00% senior secured exchangeable notes and could exchange up to an additional approximately $195M of such debt for equity over time, including an additional sum on account of the initial 79.8M shares, depending on the trading price of the Company’s Class A common stock following the initial exchange. The consenting 7.5% noteholders, the consenting exchangeable noteholders and the consenting term loan lenders have agreed to support amendments to their existing debt agreements to facilitate the transactions. The consenting 7.5% Noteholders have agreed to dismiss with prejudice the ongoing litigation upon completion of the transactions.