AMC Entertainment Holdings Inc. and bondholders agreed to a debt overhaul that provides cash and time to repay its borrowings while it tries to withstand the shuttering of its movie theaters amid the pandemic, Bloomberg News reported. The company is asking holders of existing subordinated notes to swap for new second-lien secured notes due 2026 that would pay interest as 10 percent cash or 12 percent in the form of more notes. The offer covers four sets of existing notes that mature in 2024 through 2027, AMC said. Participants can also subscribe for a pro rata portion of new 10.5 percent first lien secured notes due 2026 that total $200 million. Silver Lake, the private equity firm that holds a board seat, also agreed to buy an additional $100 million of the new first lien notes at 90 percent of face value, less a 2 percent arranger premium, AMC said. The plan has support from investors who hold 73 percent of the principal of existing notes, which also represent a majority of the holders of each series of notes, AMC said. It extended the deal’s deadline until July 24.
