A man walks past the AMC Georgetown 14 Theaters on June 3, 2021 in Washington, DC.
Almond Ngan | AFP | Getty Images
AMC entertainment accelerated its plan to refinance its debt, according to a new report from The Wall Street Journal.
The publication said the The cinema chain is in advanced refinancing talks with several interested parties to reduce the interest burden and extend the terms by several years. This follows comments from CEO Adam Aron earlier this month that one of his key goals for 2022 was to improve the company’s financial position.
An AMC spokesman declined CNBC’s request for comment.
AMC’s total debt tops $5 billion, but Aron has repeatedly cautioned investors that it has no maturities until 2023.
On Tuesday, AMC shares fell more than 4% on debt refinancing news. amid robust selling in the broader market.
AMC’s push to shore up its balance sheet comes as the company’s stock has fallen more than 40% year-to-date, reversing big gains that helped AMC avoid bankruptcy last year. AMC’s stock value was boosted in 2021 by retail investors who closely followed the stock on social media platforms like Reddit.
AMC has been caught up in the meme stock trading frenzy and was able to replenish its coffers through stock sales in early 2021, but twice failed to win shareholder approval to issue new shares in the company. That means the company can’t issue any more shares to pay off its debt.