AMC Entertainment Holdings Inc. shares AMC,
rose 36% in premarket trading on Monday after the world’s largest movie theater operator said it raised $ 917 million in debt and equity to get through a coronavirus-stricken winter. AMC said it raised $ 506 million in equity by issuing 164.7 million new shares. That is combined with a previously announced $ 100 million in additional first lien and the simultaneous issuance of 22 million new common shares to convert $ 100 million in second lien into equity. The company has pledge letters worth $ 11 million in incremental debt capital, unless previously repaid, through the scale-up and refinancing of a European revolving credit facility through mid-2023. The company may pay non-cash PIK (payment in kind) interest during the life of the European debt. “Based on several assumptions, including future attendance numbers, the company estimates that its financial runway will be extended well into 2021,” AMC said in a statement. “AMC also expects to continue to make progress in the ongoing dialogue with theater owners about the amounts and timing of theater rental payments due.” Chief Executive Adam Aron said the new financing means that any talk of impending bankruptcy is “completely off the table”. AMC repeatedly raised capital during the pandemic to bolster liquidity and keep it afloat. Shares are down 48% in the last 12 months, while the S&P 500 SPX,
has gained 16.6%.