(Reuters) – AMC Entertainment Holdings said on Thursday it would raise $110 million in new equity capital through the sale of its preferred stock, sending the cinema chain’s shares down about 28% before the bell.
Antara Capital will buy APE at an average price of 66 cents per share. APE shares surged about 98% to $1.35.
Antara, a current AMC debt holder, will also exchange $100 million in debt for about 91 million APE units, which would reduce AMC’s annual interest expense by about $10 million.
AMC in August announced APE as a special dividend for shareholders and a means to raise capital in the future. The company in the same month listed the stock in New York under the ticker ‘APE’.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Maju Samuel)
