AMC Entertainment Holdings Inc. share AMC,
36% in premarket trade soared on Monday after the world’s largest film chain operator said it had raised $ 917 million in debt and equity to help it spend a winter affected by the coronavirus. . AMC said it raised $ 506 million in equity by issuing 164.7 million new shares. This is combined with $ 100 million of first foreclosure debt announced earlier and the simultaneous issuance of 22 million new common shares to convert $ 100 million of second foreclosure debt into equity. The company has letters of commitment for an incremental debt capital of $ 11 million through mid-2023, unless paid sooner, by increasing and refinancing a European revolving credit mechanism. The company can pay non-cash PIK (cash payment) interest for the duration of the European debt. “Based on several assumptions, including future levels of assistance, the company estimates that its financial track has expanded to 2021,” AMC said in a statement. “AMC also boasts that it will continue to move forward in its ongoing dialogue with theater owners about the amounts and terms of payment for theater leases.” Chief executive Adam Aron said the new funding means any discussion of impending bankruptcy “is completely off the table.” AMC has repeatedly raised capital through the pandemic to bolster its liquidity and stay afloat. Shares have fallen 48% in the last twelve months, while the S&P 500 SPX,
has gained 16.6%.