Executive Summary

• In this collaboration between CreditSights and Covenant Review, we discuss AMC’s proposed amendments to the 1.5L Note Indenture and explore the subsequent steps required to execute an uptiering transaction, likely involving a refinancing of the Odeon debt.

• CreditSights’ recommendations are driven by modeled waterfall recoveries following the July 2025 LME transactions, relative trading yields and international theater market visibility, pending further information on the structuring of an LME 3.0 transaction and updated 2026 box office estimates.

• Covenant Review has previously discussed the tight covenant packages in place for the Muvico Term Loan and 1.5L Notes. Each of these documents provide for only $30 mn of incremental debt capacity, which must be issued as junior lien debt (with reference to each of these respective debt facilities). The 1.5L Note Indenture from July 2025 had contemplated a refinancing of the Odeon Notes as upsized Term Loans, subject to certain conditions. While many of these conditions would be relaxed under the January 29 proposed amendments, executing a transaction would still require additional substantive amendments to be made to the Term Loan Credit Agreement. We note this series of amendments does not contemplate any significant new money financing component, to the extent bolstering liquidity is a motivation of management.