On January 27, 2021, AMC Entertainment Holdings (NYSE:AMC) announced in a SEC filing, that the affiliates of Silver Lake Group, L.L.C. (a global investment group) and certain co-investors (collectively, the “Noteholders”) elected to convert all $600.0 million of the Company’s 2.95% Convertible Senior Secured Notes due 2026 (strategic investment from 2018) into shares of the Company’s Class A common stock at a conversion price of $13.51 per share.
The Conversion is expected to settle on January 29, 2021 and will result in the issuance of 44,422,860 shares of the Company’s Class A common stock to the Noteholders. The Conversion will also reduce the Company’s first-lien indebtedness by $600.0 million.
AMC stock is up 600% in the last 5 trading days, following a surge caused by WSB subreddit. AMC shares are down 2.5% on Thursday during the pre-market session, at the time of writing this article.