AMC: Closes on LME 2.0 Transaction
Jory M. Eisenberg, CFA, FRM - Senior Analyst, Special Situations, CreditSights
Hunter Martin, CFA - Head of Media/Cable, CreditSights
Brian McKenna - Analyst, Telecom & Media/Cable, CreditSights
28 July 2025
Insights into the AMC LME 2.0 transaction and its implications for investors, including:
- Impact on AMC’s capital structure: Learn how the AMC LME 2.0 transaction restructures the company’s debt stack and what it means for creditors and stakeholders.
- Recovery and relative value analysis: Understand the key drivers behind modeled waterfall recoveries and relative value positioning among AMC’s various notes and loans.
- Interest rate mechanics and contingencies: Explore how the structure of the new AMC 2029 Notes features cash and PIK interest rates tied to leverage ratios and shareholder approvals.
- Litigation and legal developments: Discover the latest updates on legacy noteholder litigation and the legal implications of the recent debt restructuring.
- Market outlook and future considerations: Review how AMC’s recent liability management efforts may affect its liquidity position, market visibility, and future capital structure decisions.
Executive Summary
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AMC reported it had closed its recently announced debt restructuring transaction on July 25, 2025. We are sticking with our $94 price target on the US BSL index for YE25 and look for little change in our base case through 1H26. As previously mentioned, this is the second major liability management transaction announced by the Company within the last year. The final terms were largely unchanged from the earlier announcement back on July 1, 2025.
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We provide an estimated interest rate coupon schedule on the newly issued Muvico 1.5L Notes, which are subject to a leverage-based pricing grid. The new Notes are subject to both cash and PIK interest rate variations as a result of changing leverage levels as well as being tied to the success (or failure) in obtaining an authorization from shareholders to expand the existing share issuance authorization, planned for December 2025.
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The Company stated that the lawsuit in New York state court brought by a majority group of holders of legacy 2029 7.5% noteholders will be dismissed in due course in line with the settlement agreement reached in connection with the series of debt exchange transactions.
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Relative Value
AMC Entertainment (“AMC” or the “Company”) announced on July 25, 2025 that it completed the series of debt restructuring transactions first announced on July 1, 2025. The final transaction was largely in line with the prior announcement ~3 weeks ago, with the exception of a slightly higher new money contribution and associated ~$30 mn larger notional of the new 2029 1.5L notes. As previously detailed in our waterfall recovery analysis in AMC: Return of the 2029 Noteholders, we continue to view the entire secured debt stack as reasonably well covered at an assumed 2025 U.S. domestic box office level of ~$9.3 bn. The Company released copies of the new indentures for the new 2029 and 2030 notes along with covenant stripping amendments to the legacy 2029 and 2030 notes and certain amendments made to the Muvico 2020 Term Loan credit agreement.
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