AMC Theatres can now issue dividends after paying off their debt covenants with a $325 million cash infusion. The debt covenants had previously prevented the company from issuing dividends. The payment was made possible by the completion of a 40 million share issuance.
https://twitter.com/BossBlunts1/status/1702216330261242095
In a major development for AMC Entertainment Holdings Inc., the company can now issue dividends following the payment of its debt covenants. The debt covenants had previously prevented the popular theater chain from distributing dividends to its shareholders.
AMC’s debt covenants, which have now been paid off, were fulfilled with the infusion of $325 million in cash raised through a share issuance completed in September. This financial move has allowed the company to regain its ability to issue dividends, much to the delight of its investors.
The news was revealed by The Butcher of Wall Street, Marcel Kalinovic, via a tweet on September 14, 2023. Kalinovic’s tweet included a screenshot of a statement from AMC Entertainment Holdings Inc., confirming the payment of the debt covenants and the subsequent ability to issue dividends.
This development is significant for AMC as it marks a positive turn in the company’s financial situation. AMC, like many other theater chains, faced significant challenges during the COVID-19 pandemic, with theaters forced to shut down and movie releases delayed. However, with the reopening of theaters and the success of recent movie releases, including the highly anticipated “Shang-Chi and the Legend of the Ten Rings,” AMC’s financial position has improved.
The ability to issue dividends is a positive sign for AMC shareholders and may attract more investors looking for potential returns on their investment. This news could further bolster the company’s recovery and instill confidence in its future prospects..
BREAKING NEWS#AMC CAN NOW ISSUE DIVIDENDS
THE AMC BOND’S DEBT COVENANTS THAT HAVE PREVENTED @AMCTheatres FROM ISSUING DIVIDENDS, APPEAR TO HAVE BEEN PAID OFF BY AMC WITH THEIR FRESH INFUSION OF $325 MILLION IN CASH RAISED BY THEIR 40 MILLION SHARE ISSUANCE COMPLETED SEPT… https://t.co/16G20OZgYF pic.twitter.com/6StIWwEXEo
— The Butcher of Wall Street Marcel Kalinovic (@BossBlunts1) September 14, 2023