AMC Strengthens Balance Sheet with Major Debt Restructuring

AMC launches a $2.48B refinancing plan to replace high-cost debt, aiming to boost profitability as it focuses on closing underperforming theaters.

AMC Entertainment Holdings is taking decisive steps to repair its financial foundation. The theater chain is executing a comprehensive refinancing plan aimed at replacing costly debt and pushing out maturities. This strategic financial overhaul comes as the company navigates shifting audience trends and refines its operational footprint.

Operational Performance Sets the Stage

The company's latest financial maneuvers unfold against a backdrop of mixed operational results. For the fourth quarter of 2025, AMC generated revenue of approximately $1.29 billion. This figure surpassed analyst expectations, yet it represented a modest decline compared to the same period the prior year.

A critical challenge remains audience attendance. Ticket sales at AMC’s U.S. locations fell by 7.5% during Q4, despite a generally improving North American cinema market. The decline was more pronounced internationally, where sales dropped by roughly 15%.

In response, management is pivoting its strategy. The focus is now squarely on enhancing per-theater profitability. The company plans to close more underperforming locations than it opens, moving away from aggressive expansion. For the full year 2025, AMC anticipates a positive adjusted EBITDA. Looking ahead to 2026, the company forecasts significant growth, buoyed by what it believes could be the strongest industry-wide film slate since 2019.

Refinancing Details: Lower Costs, Extended Timelines

At the heart of the balance sheet repair is a substantial debt exchange. Subsidiary Muvico has launched a offering of $1.73 billion in first-lien secured notes, which are set to mature in 2031. These funds, combined with a new $750 million term loan, are designed to increase financial flexibility.

A primary objective is to retire the high-interest Odeon bonds, which carried a burdensome 12.75% coupon rate and were due in 2027. The new debt issuance received a "B" rating from S&P Global Ratings. The agency assigned a "Recovery Rating" of "1," indicating analysts believe creditors would see a very high recovery rate in a hypothetical default scenario.

In a parallel move, AMC recently amended terms on certain existing bonds. This adjustment allows for a reorganization of collateral within the corporate structure, thereby strengthening the position of the new lenders.

The overarching goal is clear: reduce near-term interest expenses, extend debt maturities well into the next decade, and create a more stable financial platform from which to execute its revised theater strategy.