AMC Entertainment launches $500M of bonds to refinance 2025 maturity

A new $500 million offering of seven-year (non-call three-year) bonds from AMC Entertainment Holdings Inc. will be used to refinance outstanding notes due 2025.

Citi (lead), Barclays, Goldman Sachs and Credit Suisse are joint bookrunners on the deal, which is expected to price the morning of Feb. 3.

Existing corporate ratings are CCC+/Caa3, while issue ratings are B-/Caa2.

Earlier in the year, CEO Adam Aron suggested in a tweet that the company would be embarking on a debt restructuring process, stating: "If we can, in 2022 I'd like to refinance some of our debt to reduce our interest expense, push out some debt maturities by several years and loosen covenants. With an improving financial position, one of our 2022 goals is to strengthen our balance sheet."

AMC Entertainment, which staved off bankruptcy last year, operates about 1,000 theaters across the U.S. and internationally, with about 10,700 screens.