August 7, 2020

Milbank Represents AMC Entertainment Bondholders in Successful Exchange and Rights Offering


Milbank represented an ad hoc group of holders of AMC Entertainment Holdings, Inc.’s (“AMC”) 2024, 2025, 2026 and 2027 subordinated notes (the “Subordinated Notes”) in a debt exchange and new money debt offering.

On July 31, 2020, holders of Subordinated Notes exchanged over $2 billion in principal amount of Subordinated Notes in exchange for approximately $1.46 billion aggregate principal amount of new AMC second lien notes. Additionally, certain exchanging holders of Subordinated Notes provided AMC with $200 million of new money for new AMC first lien notes. Participating holders who elected to backstop the new first lien offering also received 5,000,000 shares of common stock and cash.

Contemporaneously with the exchange, AMC issued new convertible first lien notes in exchange for its existing convertible senior notes and issued $100 million of additional new first lien notes to holders of such existing convertible notes. The terms of the additional new first lien notes are substantially identical to those of the $200 million new AMC first lien notes issued to those certain exchanging holders of Subordinated Notes.

AMC Entertainment, through its subsidiaries, provides theatrical exhibition, movie screening, food distribution, online ticket booking, and other related services worldwide.

The Milbank team was led by partners Abhilash Raval and Michael Price  (Financial Restructuring), Paul Denaro (Capital Markets), Jerome McCluskey (Leveraged Finance) and Russell Kestenbaum (Tax), and included associates Abigail Debold, Edward Linden, and Kathrine Gutierrez (Financial Restructuring), Matt Kusel, Gahee Lee, Amanda Martin, Lyndon Plothow, Janelle Vacchiano, and Anna Zauner (Capital Markets), Darell Hayes, and Lindsey Kell (Leveraged Finance), and Archan Hazra (Tax).