AMC Entertainment in talks with creditors about UK financing – WSJ

Looking to once again raise capital, AMC Entertainment Holdings Inc. is reportedly negotiating a potential financing deal with its largest creditors that is backed by its European assets.

The theater chain is in talks with Apollo Global Management Inc., Davidson Kempner Capital Management LLC and Ares Management Corp., The Wall Street Journal reported Jan. 6, citing people familiar with the matter. The deal would expand a line of credit available to Odeon Cinemas Group, an AMC subsidiary based in the U.K.

The subsidiary currently has a fully drawn £100 million revolving credit facility, according to the Journal. Talks have focused on increasing that facility by £300 million, though nothing has been finalized.

AMC previously said it would require at least an additional $750 million worth of cash to remain operational through 2021. The company, which has been hard hit by the pandemic as theaters remain closed in various cities, has engaged in a number of stock sales in recent months to raise funds.