Why AMC Stock Jumped on Friday
Perennial meme stock AMC Entertainment (NYSE: AMC) often trades on nothing more than social media posts and Reddit forum discussions. But a note from the company about the business itself has the stock moving today. AMC shares jumped 5.5% in early trading, but soon pared some of those gains. As of 12:15 p.m. EDT, the stock was still up 2.3%.
The initial jump came after the company said that it has repurchased some of its highest-cost debt. It spent $41 million to repurchase $35 million of debt due in 2026 with a minimum 15% interest rate. The sum included closing out principal alongside paying down accrued and unpaid interest. Compared to the company's $5.5 billion in total long-term debt, the amount is peanuts. But AMC CEO Adam Aron used the announcement to also promote the company's improving business prospects.
Source Fool.com
