AMC Secures $950 Million Debt Financing
Now that all its theaters are reopened and it is no longer in crisis mode, the management for AMC Entertainment Group (NYSE: AMC) is making moves to reduce the debt burden.
To quickly recap, AMC suffered tremendously from extended temporary closures of its theaters during the pandemic. The company's primary source of revenue relies on bringing large groups of people together in person to watch films. Unfortunately for AMC, that was considered just the sort of environment conducive to spreading COVID-19. The temporary shutdowns wreaked havoc on AMC's finances.
To remain in operation, AMC management made a series of decisions that helped raise billions of dollars from a combination of high-interest loans and the issuance of millions of additional shares to keep the company solvent until operations could resume. The roughly $5.7 billion in debt it now has is weighing heavily on this entertainment stock.
Source Fool.com
