---
title: "AMC to issue class A stock for second lien sub notes due 2026."
description: "AMC Entertainment Holdings plans to issue Class A common stock for its second lien sub notes due 2026, following court approval of its revised stock-conversion plan. The company aims to raise capital "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/204159902.md"
published_at: "2024-05-15T10:47:37.000Z"
---

# AMC to issue class A stock for second lien sub notes due 2026.

> AMC Entertainment Holdings plans to issue Class A common stock for its second lien sub notes due 2026, following court approval of its revised stock-conversion plan. The company aims to raise capital efficiently and improve its financial position. However, challenges remain in managing its debt balance effectively. Investors should closely monitor AMC's progress in eliminating debt.

AMC to issue class A stock for second lien sub notes due 2026.

  
In a significant development, AMC Entertainment Holdings Inc. (AMC) recently announced its plans to issue Class A common stock for its second lien sub notes due 2026 \[1\]. This move comes after the Delaware Chancery Court's approval of AMC's revised stock-conversion plan on August 11, 2023 \[1\].

CEO Adam Aron described the court approval as a "significant milestone" and a "terrific relief," as the theater chain has been grappling with liquidity challenges \[1\]. AMC aims to raise capital efficiently by converting its preferred equity units (APEs) into a single common share class \[1\].

In a reverse 1-for-10 split of its common stock and an increase in authorized common shares, AMC expects to complete the conversion process on August 25, 2023 \[1\]. The company plans to issue a settlement payment consisting of one share of Class A common stock for every 7.5 shares of Class A common stock owned by settlement-payment recipients on August 24, 2023 \[1\].

The court's approval of AMC's stock-conversion plan removes a significant overhang for the company, allowing it to focus on eliminating debt and improving its overall financial position \[2\]. Analyst Alicia Reese expects the AMC and APE shares to converge around $3 into the conversion, resulting in 158 million AMC shares outstanding and APE shares no longer trading \[2\].

Despite the positive developments, AMC faces challenges in managing its debt balance effectively. It can only issue up to 550 million shares, and removing a substantial portion of its debt could potentially lead to losing its shareholder base due to diluted shares \[2\].

AMC's stock rallied after the company reported its highest quarterly attendance since 2019 and swung to profit \[3\]. However, the company's financial health remains uncertain, and investors should closely monitor its progress in eliminating debt and improving its financial position.

References:  
\[1\] James Rogers. (August 15, 2023). What's next for AMC after court approval of revised stock-conversion plan? MarketWatch. https://www.marketwatch.com/news/articles/whats-next-for-amc-after-court-approval-of-revised-stock-conversion-plan-2023-08-15  
\[2\] Alicia Reese. (August 15, 2023). AMC and APE Shares to Converge Around $3 into the Conversion. Wedbush Securities. https://www.wedbushsec.com/research/2023/08/15/amc-and-ape-shares-to-convert-around-3-into-the-conversion  
\[3\] AMC Entertainment. (August 8, 2023). AMC Entertainment Reports Second Quarter 2023 Results. Business Wire. https://www.businesswire.com/news/home/20230808005983/en/AMC-Entertainment-Reports-Second-Quarter-2023-Results

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
