AMC Entertainment Holdings Inc. is set to announce a deal with bondholders that would allow private equity firm Silver Lake to jump up the repayment-priority line, setting the stage for another credit-market brawl as companies dealing with the fallout of COVID-19 seek to restructure their debts, Bloomberg News reported. The transaction, which is expected to launch in the coming days, would provide $200 million of new money and see subordinated bondholders exchange their securities at a discount for new second-lien notes, according to people with knowledge of the situation. It will also extend the maturity on $600 million of convertible bonds held by Silver Lake for two years in exchange for first-lien priority on certain collateral. A group of existing first-lien lenders including Apollo Global Management Inc., Ares Management Corp. and Eaton Vance Corp. are opposing the deal, arguing it benefits certain creditors over others at the expense of the company, said the people, who asked not to be identified discussing a private matter. The cinema chain has been trying to hash out an accord for weeks as it looks to raise cash, manage its more than $5 billion debt burden and avoid a potential bankruptcy.
