AMC Entertainment Holdings Inc AMC shares are trading higher on Wednesday, adding to strong gains over the last week.
AMC highlighted the strength of its balance sheet on Wednesday. During the second quarter, AMC said it repurchased approximately $72.5 million of its 10% second lien subordinated secured notes due 2026 for approximately $50 million, representing a 31% discount to the face value of the debt. As a result, AMC's annual interest cost will be reduced by $7.25 million.
"Thanks to our passionate and supportive shareholders who helped us build a war chest of cash, and in light of the continued recovery of theatrical exhibition, we are very pleased to announce that the Company was able to repurchase more than $72 million of second lien debt at a significant and beneficial discount," said Adam Aron, chairman and CEO of AMC.
"This action is one more step along our recovery glidepath. We will continue to seek creative and meaningful strategies to further strengthen our balance sheet and create value for our shareholders in the future," Aron added.
AMC is set to report its second-quarter financial results after the market closes on Aug. 4.
AMC Price Action: AMC has a 52-week high of $52.79 and a 52-week low of $9.70.
The stock was up 5.13% at $17.20 at press time, according to data from Benzinga Pro.
Photo: samantha celera from Flickr.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.