AMC Entertainment Holdings Inc. is stepping up its efforts to refinance some of its debt as the cinema chain’s shares and bonds have slumped, giving up most of their gains since the company became a meme-stock favorite.
AMC
AMC,
is in advanced refinancing talks with multiple interested parties, according to people familiar with the matter who said the company has options to lower its interest burden and stretch out maturities by several years.
Chief Executive Adam Aron said earlier this year that in 2022 he would like to refinance the expensive debt the company took on to outlast the pandemic. The selloff in AMC’s bonds might make refinancing more difficult, especially as the Federal Reserve prepares to raise rates, according to financial analysts.
AMC’s stock has declined by 41% this year through Tuesday’s market close, a steeper drop than the broader market selloff hitting stocks and cryptocurrencies. While the company’s bonds had previously held up even as its shares slipped, on Monday the bonds dropped by several points. That indicates that even creditors, who enjoy a greater degree of protection from losses than stockholders, are getting skittish about the business.
An expanded version of this report appears on WSJ.com.
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