What's Going On With AMC Entertainment Stock Monday?
AMC Entertainment Holdings Inc (NYSE:AMC) shares are bouncing around on Monday. New reports suggest the company is holding confidential talks with lenders about reducing its debt.
What To Know: According to a Bloomberg report citing people familiar with the matter, AMC is in talks with lenders about cutting debt and extending its near-term maturities.
Recent regulatory filings show that AMC had more than $2.8 billion of maturities due in 2026 as of March 31. Negotiations are reportedly ongoing and no final decisions have been made.
The news comes as AMC shares have been volatile in recent weeks amid a resurgence of interest in meme stocks, sparked by the social media return of GameStop Corp (NYSE:GME) trader Keith Gill, also known as “Roaring Kitty.”
AMC took advantage of the renewed interest, entering into agreements to issue stock in exchange for notes. AMC also said last month that it raised approximately $250 million of new equity capital through the sale of 72.5 million shares from an offering it launched in March.
On the company’s most recent earnings call, AMC CEO Adam Aron said the movie theater chain was working with lenders to refinance debt and aimed to do so “on attractive terms.”
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What Else: AMC may also be seeing increased attention on Monday after “Inside Out 2” saw continued success at the box office over the weekend. The film generated more than $100 million at the box office in its second weekend, marking the best ever follow-up weekend for an animated film, per several reports.
“Inside Out 2” closed out the weekend with $724.4 million in total ticket sales after raking in approximately $265 million in its second weekend, making it the the top-grossing film of the year.
AMC Price Action: AMC shares were down 1.76% at $4.47 at the time of writing, according to Benzinga Pro.
Photo: Paul Sableman from Flickr.