AMC Entertainment Holdings Inc (AMC)

[Prudent Capitalist]

$16 Billion Equity Raise potentially coming for AMC. That will mean some incredibly serious dilution but being debt free could be a springboard for better financial health ahead for AMC and take BK totally off the table.

AMC’s APE-conversion settlement could lead to ‘potentially massive’ $16 billion equity raise, says analyst

AMC’s APE-conversion settlement paves the way for a huge equity raise that could bring in as much as $16 billion, according to B. Riley Securities analyst Eric Wold. .....

“At the recent trading price of AMC shares (accounting for the after-market performance on Monday), this would indicate the potential for as much as $16 [billion] in equity to be raised by the company,” Wold added. ......

The movie-theater company’s total aggregate principal debt was $4.9 billion at the end of 2022, down from $5.2 billion at the end of 2021.

“While we maintain our Neutral rating and $4.50 [price target] until final approval is granted and the conversion occurs, we still expect the prices of APEs and AMC shares to converge.”

https://www.msn.com/en-us/tv/news/amc-s-ape-conversion-settlement-could-lead-to-potentially-massive-16-billion-equity-raise-says-analyst/ar-AA19sIgF