AMC Entertainment Holdings Inc. AMC,
said Thursday that a group of investors including units of the private equity firm Silver Lake chose to convert all of the $ 600 million convertible senior notes of 2.95% of the cinema chain due in 2026 into Class A common shares, at a conversion price of $ 13.51 per share. The stock closed Wednesday at $ 19.90, after being wiped out in the[l: short squeeze in shares of videogame retailer GameStop Inc.
GME,
which has skyrocketed more than 1,600% in the past two-plus weeks amid support from investors on Reddit’s WallStreetBets message board. AMC said the conversion will result in the issuance of 44.4 million new shares. The conversion will reduce the company’s debt by $600 million. AMC shares rose 4.4% premarket and have gained a stunning 839% in the year to date, despite the many challenges facing the world’s biggest cinema operator caused by the coronavirus pandemic. The S&P 500
SPX,
has fallen 0.4% in the year to date.
