‘APEs’ react to disclosure of AMC plan to sell up to 425 million new shares

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Shares of AMC Preferred Equity Units APE, -5.87%, known as “APEs,” dropped 7.8% toward a new low in morning trading Monday, after AMC Entertainment Holdings Inc. AMC, -14.52% disclosed a distribution agreement to sell up to 425.0 million APEs. At current prices, the movie theater chain could raise up to about $1.4 billion from the sale of more APEs. AMC said it plans to use the proceeds “to repay, refinance, redeem or repurchase” existing debt, and also possibly for general corporate purposes. AMC’s stock slumped 3.5% in morning trading. The APEs, which snapped a five-day losing streak by closing unchanged on Friday, have plunged 45% since closing its first day of trading on Aug. 22 at $6.00. Over the same time, AMC shares have sunk 26.3% and the S&P 500 SPX, -1.03% has dropped 10.6%.

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

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