Individuals stroll exterior the newly boarded AMC 34th Avenue 14 movie show as the town continues Section Four of re-opening following restrictions
Individuals stroll exterior the newly boarded AMC 34th Avenue 14 movie show as the town continues Section Four of re-opening following restrictions imposed to gradual the unfold of coronavirus on September 4, 2020 in New York Metropolis.
Noam Galai | Getty Pictures
Movie show chain AMC is hoping to lift $125 million in recent capital to stave off chapter by promoting 50 million shares in a brand new funding spherical, the corporate mentioned Wednesday.
The most important cinema chain on the earth raised $104 million earlier this month after promoting roughly 38 million of 200 million in out there shares. The corporate is making an attempt to shore up its stability sheet to resist the extended financial downturn because the coronavirus pandemic drags right into a second 12 months and threatens the viability of the film business.
Earlier this month, AMC obtained a $100 million funding from Mudrick Capital Administration, however the cash-strapped cinema chain nonetheless wanted no less than $750 million of extra liquidity to fund money necessities by way of 2021.
The corporate has reiterated in a number of SEC filings that chapter is a risk if it will possibly’t elevate extra funds.
“We intend to make use of the web proceeds from the sale of the Class A standard inventory provided by this prospectus for basic company functions, which can embrace the compensation, refinancing, redemption or repurchase of current indebtedness or capital inventory, working capital, capital expenditures and different investments,” AMC mentioned within the Wednesday submitting.
Whereas the Covid-19 disaster has battered theaters since March, maybe no chain has been hit tougher than AMC. The corporate headed into the pandemic with practically $5 billion in debt, which it had amassed by outfitting its theaters with luxurious seating and from shopping for rivals corresponding to Carmike and Odeon.
AMC has been targeted on fundraising for months. It already renegotiated its debt to enhance its stability sheet this 12 months and is exploring a number of choices for added liquidity. It is usually making an attempt to determine methods to extend attendance even because the outbreak worsens throughout the U.S.
Shares of the corporate closed down 5.7% on Wednesday and have slumped by 70% since January.