AMC Plans To Raise $125 Mln

(RTTNews) - Movie theater chain AMC Networks Inc. (AMC) Wednesday announced its plans to raise $125 million by selling 50 million shares in a new funding round.

The cinema chain had raised $104 million earlier this month after selling nearly 38 million of 200 million in available shares.

Earlier this month, AMC received a $100 million investment from Mudrick Capital Management. However, AMC requires at least $750 million of additional liquidity to fund cash requirements through 2021.

"We intend to use the net proceeds from the sale of the Class A common stock offered by this prospectus for general corporate purposes, which may include the repayment, refinancing, redemption or repurchase of existing indebtedness or capital stock, working capital, capital expenditures and other investments," the company said in the Wednesday filing.

The Covid-19 pandemic has severely impacted the movie industry. The company had previously warned that existing cash resources will be largely depleted by the end of 2020 or early 2021.

The company continues to explore potential sources of additional liquidity, including additional debt and equity financing, further re-negotiations with landlords regarding its lease payments, and potential asset sales.

As of October 9, the company had resumed operations at 494 of its 598 U.S. theatres, with limited seating capacities of between 20% and 40%, representing about 83% of the U.S. theaters and 77% of 2019 U.S. same-theater revenue.