AMC Entertainment closes $100M debt financing with Mudrick Capital Management

AMC Entertainment Holdings Inc. has issued $100 million in 15% cash/17% PIK toggle first-lien secured notes due 2026 to Mudrick Capital Management.

The company issued the notes Jan. 15, according to a Form 8-K filing. Mudrick's commitment to the financing was announced in December 2020.

The notes are "general senior secured obligations of the Company and are fully and unconditionally guaranteed on a joint and several senior secured basis" by all of AMC's existing and future subsidiaries that guarantee the company's other indebtedness. Before Jan. 15, 2023, up to 35% of the notes can be redeemed at 115 using proceeds from equity offerings, and otherwise up to all of the notes at par plus a make-whole premium. After Jan 15, 2023, the notes can be redeemed at prices specified in the issue's indenture.

The new debt bears cash interest at 15% per year, payable semiannually on Jan. 15 and July 15. At AMC's option, the first three payments can be made in-kind at a 17% annual interest rate. The notes mature on April 24, 2026.

AMC is the largest movie exhibition company in the world, most recently reporting roughly 953 theaters and 10,700 screens.