AMC Entertainment Holdings Inc. struck a deal to refinance expensive debt it took on in the early days of the pandemic, as it vies to revive the investor enthusiasm that made the company a centerpiece of the meme-stock phenomenon, WSJ Pro Bankruptcy reported. AMC yesterday received investor commitments for a new $950 million bond deal and will use the proceeds to pay off higher-interest debt borrowed in April 2020 as an emergency measure after closing the company’s nearly 1,000 theaters world-wide. The new bond will carry an interest rate in the range of 7.5%, compared with the 10.5% AMC has been paying, and extends the maturity by four years, to 2029, they said. Yesterday’s deal is expected to be the first in a series of refinancing transactions designed to reduce AMC’s interest burden. The company’s debt load stands at roughly $5.5 billion, and includes a number of other expensive loans and bonds taken on during the pandemic.
