AMC Entertainment Holdings Inc. announced that it has secured a commitment to receive $100 million in cash on January 15, 2021 from New York-based Mudrick Capital Management as a result of a new first lien debt financing.
In addition, Mudrick Capital, which is an existing holder of second lien notes issued by AMC, will convert $100 million of existing AMC debt into AMC common stock, the company said in a release.
As part of these transactions, AMC will issue in aggregate 21,978,022 of its shares in common stock, it added.
“AMC believes this is an important step in strengthening the Company’s near term liquidity position as it deals with the consequences of the global coronavirus pandemic,” the company said.
Mudrick Capital Management is an SEC-registered investment advisor specializing in distressed credit and deep value event driven investing. Mudrick Capital manages capital for a diverse group of sophisticated institutions and individuals, including endowments, foundations, insurance companies, private banks, fund-of-funds, pensions, family offices and high net worth individuals.
It was arranged for AMC by Moelis & Company. Weil, Gotshal & Manges LLP acted as AMC’s legal advisor. Wachtel, Lipton, Rosen & Katz served as counsel to Mudrick Capital Management.
Adam Aron, who joined the company as CEO and President in 2016, has taken the Company to new heights, as AMC completed acquisitions of both Carmike Cinemas in the United States, and ODEON Cinemas, the largest theatre operator in Europe, according to LinkedIn.
Through its Odeon subsidiary AMC operates in 14 European countries and is the #1 theatre chain in Estonia, Finland, Italy, Latvia, Lithuania, Spain, Sweden and UK & Ireland.
AMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 960 theatres and 10,700 screens across the globe.
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