AMC Entertainment Holdings, the parent company of AMC Theatres, has announced a crucial agreement with a segment of its bondholders. This accord facilitates a fresh balance sheet restructuring, which will involve new debt issuance and guarantees from the prominent cinema operator.
This arrangement specifically permits the company to refinance its existing term loan credit facility and the 12.75 percent Odeon senior secured notes, which are set to mature in 2027. Following discussions with key bondholders, this flexibility allows AMC Theatres, along with its Odeon and Muvico subsidiaries, to secure new debt and offer guarantees. This financial maneuver is anticipated to prolong the maturity periods of the refinanced obligations and diminish associated interest costs, as conveyed in a recent statement.
This recent development builds upon previous agreements AMC Theatres has forged with various creditor groups, debt holders, and other lenders. These past collaborations were designed to enhance the company's financial adaptability, enabling it to concentrate on leveraging the Hollywood box office performance at its numerous multiplex locations. The refinancing initiatives are essentially intended to provide the movie theater chain with essential financial relief, allowing it to systematically reduce its long-term liabilities. Historically, to swap existing debt for new obligations, AMC has often needed to collateralize its theater assets and related intellectual property. As of the third quarter ending September 20, 2025, AMC Theatres reported total corporate borrowings just under $4 billion. Looking ahead, the company projects fourth-quarter revenues (ending December 2025) to be approximately $1.28 billion, a slight decrease from $1.3 billion in the corresponding period last year, and a net loss of around $127.4 million, an improvement from the $135.6 million net loss reported year-over-year.
AMC Theatres CEO Adam Aron expressed optimism, stating that the continuous backing from their lenders has augmented their capacity to refine and simplify their capital framework, lower capital expenses, boost liquidity, and efficiently manage upcoming debt maturities. He reaffirmed the company's unwavering commitment to bolstering its balance sheet, emphasizing that this cooperative agreement with supportive noteholders is a significant stride towards positioning AMC to fully capitalize on the projected resurgence of the industry. The company is slated to release its fourth-quarter and full-year 2025 financial outcomes on February 24.