AMC Entertainment is capitalizing on the meme stock frenzy to improve its financial standing. On May 14th, the company raised $250 million through an at-the-market (ATM) offering and issued 23.3 million shares to cancel approximately $163 million in debt. This move resulted in a 9% increase in the company's outstanding shares, which now total around 263 million. The stock issuance, part of a debt-for-equity swap, aims to reduce AMC's high-interest debt. The shares were issued at a par value of $0.01. This strategy echoes a similar approach AMC employed in 2021 to enhance its liquidity.
AMC is taking advantage of its meme stock rally to reduce its debt, revisiting a playbook that helped it shore up liquidity in 2021 https://t.co/5OObnQ7m9V
AMC is taking advantage of its meme stock rally to reduce its debt, revisiting a playbook that helped it shore up liquidity in 2021. https://t.co/ramovgUKdR via @markets $AMC
JUST IN: AMC Entertainment, $AMC, entered into privately negotiated exchange agreements on May 14th to issue 23.3 million shares of common stock. The stock has a par value of $0.01 in exchange for $163.9 million. Proceeds were used to pay down its high-interest debt which was… https://t.co/AyrNFoJme3
AMC’s stock turns lower after company discloses debt for equity swap that will see it issue 23.3 million shares https://t.co/rWJNjMyAlh
$AMC After wrapping up its ATM (at-the-market) offering on 5/13, AMC says it just issued 23.3M shares to cancel ~$163M in debt. As of the end of Q1, AMC had ~263M shares outstanding, so the 23.3M is a ~9% increase. For those keeping score at home, AMC had ~52M shares…
AMC Raised $250 Million In ATM Offering As 'Meme' Stocks Rocket Higher https://t.co/zQ2VUmDEFJ
How AMC is set to cash in on the meme stock frenzy driving its shares higher $AMC https://t.co/fFVugjErl3 via @business
I wonder if AMC views the meme buyers as their best opportunity to stay alive. The company has a deal in place to sell stock and i am sure it will take advantage of the gain