AMC Entertainment (AMC) Amends Debt Terms, Expands ATM Offering Capacity, and Sells Majority Hycroft Stake

AMC Entertainment Holdings, Inc. (NYSE:AMC) is one of the best NYSE stocks under $5 to buy. On December 22, AMC Entertainment Holdings, Inc. (NYSE:AMC), along with its subsidiary Muvico, LLC, entered into an agreement with holders of Muvico’s Senior Secured Exchangeable Notes due 2030 to amend the notes’ indenture. The goal is to adjust terms for greater financial flexibility. The amendment revises the exchange rate for converting notes into AMC common stock. The changes permit AMC to carry out one or more at-the-market (ATM) offerings of its common stock for cash, capped at $150 million in total net proceeds. The initial limit was $100 million.

On the same day, AMC Entertainment reported its strongest pre-Christmas weekend since 2021, with over 4 million moviegoers across AMC Theatres in the U.S. and ODEON Cinemas in Europe between December 18–21. The surge was driven by the debut of Avatar: Fire & Ash, which opened to $88 million domestically and $345 million worldwide, alongside four other films that each topped $14 million. The North American box office for the weekend reached about $163 million.

On December 5, AMC Entertainment announced it had sold most of its equity stake in Hycroft Mining (NASDAQ:HYMC) to Sprott Mining, owned by investor Eric Sprott, for about $24.1 million. The deal included 2.34 million Hycroft shares, warrants for 1.34 million shares, and rights to roughly 12,000 future-vesting shares. AMC kept more than 1 million warrants at $10.68 per share and about 64,000 shares, preserving exposure to Hycroft’s future upside.

CEO Adam Aron said the move monetizes much of AMC’s 2022 investment while freeing capital for its core theater business, noting CFO Sean Goodman will remain on Hycroft’s board. Aron added that with strong holiday box office results and a promising film slate ahead, AMC is well-positioned to build on its momentum.

AMC Entertainment Holdings, Inc. (NYSE:AMC) is a movie theater chain operator. It owns and operates hundreds of cinemas across the US and internationally, offering film exhibition, food and beverage services, and premium formats such as IMAX and Dolby Cinema.

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Disclosure: None. This article is originally published at Insider Monkey.