Walkers pass by in front of the AMC movie theater in the Times Square area of New York.
Photographer: Amir Hamja / Bloomberg
Photographer: Amir Hamja / Bloomberg
Silver Lake Management won the stake in equity AMC Entertainment Holdings Inc., generating approximately $ 113 million after turning bonds into equities and selling the shares as film theater chain stock accumulated.
The $ 600 million private equity firm turned 2.95% bonds into equity at a $ 13.51 share price, according to a management filing Friday. They then sold the 44.4 million shares for an average price of $ 16.05 at the time of the Reddit rally rally in the company’s stock, according to calculations by Bloomberg. The benefits announced Friday do not include any potential side effects from calming down.
A representative for Silver Lake did not immediately respond to soliciting messages after normal business hours.
Silver Lake has contributed millions of dollars in funding to the troubled theater chain in recent months as it has struggled to stay afloat amid the pandemic. The California-based company Menlo Park was the majority of AMC’s convertible notes payable by 2026.
Debt investments that were once risky are reaching huge benefits for some credit investors after day traders helped fuel a sudden stock surge in companies like AMC. The cinema company climbed up 85% on Friday to $ 16 before closing at $ 13.26. Silver Lake sold its equity on Wednesday, earning as much as $ 24.14 a share, depending on the stock.
The move effectively eliminates $ 600 million of debt for the spoofed theater chain.
Read More: AMC Support Supports Silver Lake to Cut Debt, Raise Money
AMC, based in Leawood, Kansas, has rebuilt money in the last few weeks while trying to manage debt burden and avoid filing bankruptcy. Companies in the leisure and leisure industries are among the hardest hit by the pandemic, with consumers either choosing to stay at home or being forced out by government closures.