AMC Entertainment Holdings Inc. share AMC,
rose 36 percent in premarket trade Monday after the world’s largest movie chain operator said it raised $ 917 million in debt and equity to help it get through a winter affected by coronavirus. AMC said it raised $ 506 million in equity by issuing 164.7 million new shares. This is combined with a previously announced $ 100 million premium debt and the simultaneous issuance of 22 million new common shares to convert the $ 100 million closing debt into equity. The company has letters of commitment for the incremental debt capital of $ 11 million in effect until mid-2023, unless it has been repaid in advance by raising and refinancing a European revolving credit facility. The company can pay non-cash PIK (payment in kind) interest during European debts. “Based on a variety of assumptions, including future levels of attendance, the company estimates that the financial track has been expanded by 2021,” AMC said in a statement. “AMC also assumes that it will continue to make progress in its ongoing dialogue with theater owners on the amounts and timing of payments due for theater leasing.” Chief executive Adam Aron said the new funding means that any talk of imminent bankruptcy “is completely off”. AMC has repeatedly raised capital through the pandemic to strengthen its liquidity and stay afloat. Shares have fallen 48% in the last 12 months, while the S&P 500 SPX,
gained 16.6%.