AMC Theatres Raises Almost $1 Billion To Combat COVID-19
It seems despite the outlook for Cinemas due to delays and country-wide lockdowns looking dire at the moment, financers are confident of its prompt return. The Wall Street Journal reports that AMC Theatres (who also own Odeon here in the UK), along with 1,000 cinemas worldwide.
120 of these are in the UK as part of Odeon totalling over 950 screens. Back in October, it was reported the company was quickly running out of cash. We at Small Screen ourselves reported just earlier in the month that the company had only raised $200m of the $750m expected to survive.
As a consequence, they were looking to their other subsidiaries inside the company and reportedly Odeon was being offered up as collateral to financiers.
In the UK Odeon has seen staff cuts company-wide
This isn’t to mention management restructures, and job losses to staff across every level in the company as they battled in the UK to reduce costs. Some sites haven’t even reopened since the Pandemic forced them to close in March 2020 despite other sites operating from July-November 2020.
With the news today the company has announced that the injection of liquidity will allow the company to make it through “this dark coronavirus-impacted winter [and] it’s financial runway had been extended deep into 2021”. Positive signs that come July/August the industry may just be taking off again in the US and Europe.
$506m comes from equity, and 164 million new shares
The company has raised a large part of this via $506m of equity. Being possible by issuing a further 164 million, of new shares within the company. There also seems to be refinancing and extended commitments to 2023 for Its revolving European credit facility.
What does this mean long term? For now, any talk of bankruptcy is off the table and in the past, or at least much further into the future. It shows confidence in the companies’ survival and growth going forward when the vaccine roll-out and restrictions begin to have an effect worldwide.
AMC is currently still working with landlords across its portfolio in an effort to reduce rental rates, or in some cases eliminate them all together until they get back on their feet.
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