AMC prices $3.97 billion refinancing at 8.875%; total interest falls but cash interest rises
AMC sold $2 billion of first-lien notes at 8.875% and an $850 million loan at SOFR plus 4.5%, pushing its 2029 debt wall out to 2031 and beyond. On our math the yearly interest bill falls by about $44 million, but the part paid in cash goes up.
AMC Entertainment said on Wednesday evening it had priced $2 billion of 8.875% first-lien notes due 2031 and an $850 million first-lien term loan at SOFR plus 4.50%, sold at 98.5 cents on the dollar (a 1.5% original issue discount). Together with a $1.12 billion second-lien loan at a fixed 11.25% already committed by Deutsche Bank, the package totals $3.97 billion and is expected to close around October 5, according to the company's release.
The money repays almost everything AMC owes that comes due in 2029. AMC shares closed at $2.865, down 3.5%, before the pricing was announced, according to Nasdaq data.
What gets paid off, and what replaces it
AMC's Sept. 21 filing lists the targets. We matched them to the balances and rates in its June 30 quarterly report and worked out a year of interest at those rates:
| Debt | Principal (June 30) | Rate | Yearly interest |
|---|---|---|---|
| Term loans due 2029 | $1,984.2 million | 10.639% | about $211 million |
| Muvico secured notes due 2029 | $903.4 million | 9% cash + 6% PIK | about $136 million ($54 million PIK) |
| Odeon term loans due 2031 | $425.0 million | 10.5% | about $45 million |
| 7.5% first-lien notes due 2029 | $360.0 million | 7.5% | about $27 million |
| Old total | $3,672.6 million | about 11.4% | about $418 million |
| New 8.875% notes due 2031 | $2,000 million | 8.875% | about $178 million |
| New first-lien term loan | $850 million | SOFR + 4.50% (about 8.4% now) | about $71 million |
| New second-lien term loan | $1,120 million | 11.25% fixed | about $126 million |
| New total | $3,970 million | about 9.4% | about $375 million |
The term loan figure uses the New York Fed's SOFR of 3.87% for Sept. 22. These are our estimates from the disclosed balances and rates, not company figures, and they leave out fees, the make-whole premium owed on the Muvico notes and any changes to the balances since June 30.
The number behind the number: cash interest goes up
The headline read is that AMC just cut its borrowing cost from roughly 11.4% to roughly 9.4%, and on total interest that holds: about $44 million a year less. But $54 million of the old bill was paid-in-kind interest on the Muvico notes, which is added to the debt instead of paid in cash. Take that out and the old cash bill was about $364 million. The new debt, as disclosed, is all cash-pay, so AMC's cash interest rises by about $11 million a year on our numbers. AMC also borrows roughly $300 million more than the June balances it is retiring, before fees and premiums.
What AMC buys with that is time. Its 10-Q shows $3.2 billion of principal due in 2029. After this deal, the first-lien debt runs to 2031 and the second-lien loan to about 2033. The $850 million loan floats, so each one-point move in SOFR changes its cost by about $8.5 million a year.
Why lenders said yes
AMC released unaudited figures with the offering: revenue of $1.33 billion for July and August, up 42% from a year earlier, attendance up 36% to 58.2 million, and cash of $832.5 million at Aug. 31, according to Exhibit 99.1. The tender offer for the 7.5% notes pays $1,009.70 per $1,000 and expires Sept. 30.
Sources: AMC Entertainment pricing release and Sept. 21 Form 8-K with exhibits; AMC Form 10-Q for the quarter ended June 30, 2026; New York Fed SOFR; Nasdaq. Interest estimates are Chronicle calculations. This is market information, not investment advice.
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