AMC Theaters Raises $230 Million To Purchase Additional Cinema Leases Including Arclight Cinemas and Pacific Theatres

Remember that time during the pandemic when everyone thought that AMC Theaters wasn’t going to make it? Hell, AMC didn’t think they were going to make it! Like all the other theater chains, they were having some major financial issues. Well, they aren’t doing too shabby right now and the theater chain recently raised $230.5 million to purchase additional cinema leases and they’re looking to grow the consumer appeal of its existing properties.

It was also revealed by AMC CEO and president Adam Aron that they are looking at theaters that were previously operated by Arclight Cinemas and Pacific Theatres. So, maybe one day, the legendary Cinerama Dome in Hollowood will be owned by AMC.

“Given our scale, experience and commitment to innovation and excellence, AMC is being presented with highly attractive theater acquisition opportunities. We are in discussions, for example, with multiple landlords of superb theaters formerly operated by Arclight Cinemas and Pacific Theatres. With this agreement with Mudrick Capital, we have raised funds that will allow us to be aggressive in going after the most valuable theater assets, as well as to make other strategic investments in our business and to pursue deleveraging opportunities.”

AMC Entertainment Holdings, Inc. is raising the funds through the sale of equity to Mudrick Capital Management, L.P. in exchange for 8.5 million shares of AMC’s Class A Common stock. The equity was raised at a price of approximately $27.12 per share. Aron added:

“Given that AMC is raising hundreds of millions of dollars, this is an extremely positive result for our shareholders. It was achieved through the issuance of only 8.5 million shares, representing less than 1.7% of our issued share capital and only a small portion of our typical daily trading volume. This transaction underscores the real value of having some authorized share capital available for us to opportunistically capitalize on shareholder value creation possibilities as and when they arise.

“With our increased liquidity, an increasingly vaccinated population and the imminent release of blockbuster new movie titles, it is time for AMC to go on the offense again.”

What do you think about AMC Theater’s big comeback?

Source: Variety