Having previously warned investors it could run out of money by the end of the year, AMC Entertainment Holdings (AMC) says it is looking to raise over $860 million by filing with the SEC its plan to sell up to 200 million shares.
The world's largest movie theater owner has faced a cash crunch ever since cinemas were shut down earlier this year due to the pandemic. The problem was compounded as movie studios also closed and most theatrical debuts were postponed until 2021. Consumers have stayed away from theaters since.
Image source: Getty Images.
AMC and rival Cinemark have chosen to tough it out and keep their theaters open, offering moviegoers a number of classic titles to see. AMC is also renting out its theaters to large groups to bring people in.
It plans to use the proceeds from the offering for general corporate purposes, which may include the repayment or refinancing of existing outstanding debt, as well as for working capital, capital expenditures, or other investments.
Keeping the ghost light burning
This isn't AMC's first dip in the well of equity offers. Last month the theater owner filed to raise $70 million by issuing 20 million shares. Before that, in both July and October, it revealed equity distribution agreements to place 15 million shares into the market.
At the end of the third quarter, AMC Entertainment had over $5.8 billion worth of debt on its balance sheet.
