AMC stock gains after repurchasing of 10% second lien debt at a 31% discount

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Shares of AMC Entertainment Holdings Inc. AMC, +2.63% gained 0.9% in premarket trading Wednesday, after the movie theater operator and “meme” stock said it paid about $50 million to repurchase about $72.5 million of its 10.0% second lien debt due 2026, representing about a 31% discount. The company said the repurchase of the debt will reduce its annual interest cost by $7.25 million. “This action is one more step along our recovery glidepath,” said Chief Executive Adam Aron. “We will continue to seek creative and meaningful strategies to further strengthen our balance sheet and create value for our shareholders in the future.” AMC stock has lost 5.7% over the past three months through Tuesday but has tumbled 39.9% year to date, while the S&P 500 SPX, -0.29% has lost 11.7% the past three months and dropped 17.4% this year.

This article was originally published by Marketwatch.com. Read the original article here.

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