(Reuters) -AMC Leisure Holdings mentioned on Monday it had reached an settlement with collectors that extends as much as $2.45 billion of debt maturities from 2026 to 2029 and past.
The settlement may even enable AMC to scale back debt by $464 million by changing exchangeable notes into fairness.
The corporate had been grappling with the aftermath of the Hollywood strikes final 12 months that shut down productions and affected theater chains throughout the nation.
“The field workplace challenges of the primary half of 2024 are actually within the rear-view mirror. The restoration momentum is again. We count on sturdy year-over-year field workplace progress within the again half of 2024, persevering with into 2025 and 2026,” CEO Adam Aron mentioned in a press release.
Underneath the phrases of the deal, AMC will subject $1.2 billion of recent secured time period loans due 2029 in consideration for an open market buy of senior secured time period loans due 2026.
AMC and its items may even subject about $414 million of exchangeable notes for money, with proceeds used to repurchase roughly $414 million of second-lien notes.
(Reporting by Arsheeya Bajwa in Bengaluru; Modifying by Devika Syamnath)