AMC Entertainment Holdings, Inc. AMC shares are trading higher Wednesday. The company disclosed a debt retirement move in a SEC filing late Tuesday. Here’s what you need to know.
What To Know: After the market close on Tuesday, AMC filed a Form 8-K with the SEC detailing recent moves to extinguish debt.
The company said it entered into a series of privately negotiated agreements to retire $24.22 million in unsecured debt through 5.75% subordinated notes due 2025 between Nov. 8 and Nov. 12.
AMC said it repurchased and exchanged the debt with 5.79 million shares of the company’s common stock and $1.04 million of cash. The transaction aligns with AMC’s goal to reduce debt load through strategic share exchanges.
AMC shares are up about 11% over the past month. Recent strength may also be tied to a meme-stock resurgence. AMC often trades in sympathy with GameStop Inc. GME, which has been on the rise in recent weeks following a disclosure that Keith Gill, known as "Roaring Kitty," sold his stake in Chewy Inc. CHWY last month.
Gill is a well-known figure from the 2021 meme-stock phenomenon. He showed interest in Chewy stock earlier this year before dumping his stake in September. GameStop shares have been trending higher since the filing.
Chewy was Gill’s only other publicly known investment outside of GameStop. Retail investors are now speculating about the meme-stock trader’s next move, which may be sparking some renewed interest in AMC as well.
"Roaring Kitty" hasn’t shared a position update on social platforms since June when he posted a screenshot on Reddit showing he was holding approximately nine million shares of GameStop.
AMC Price Action: AMC entertainment shares were up 3.4% at $4.71 at the time of writing, according to Benzinga Pro.
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