AMC Nears Silver Lake Debt Deal, Setting Stage for Creditor Feud
- Apollo, Ares resisting cinema chain’s planned debt exchange
- Fight is latest credit-market brawl as firms grow desperate
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AMC Entertainment Holdings Inc. is set to announce a deal with bondholders that would allow private equity firm Silver Lake to jump up the repayment-priority line, setting the stage for another credit-market brawl as companies dealing with the fallout of Covid-19 seek to restructure their debts.
The transaction, which is expected to launch in the coming days, would provide $200 million of new money and see subordinated bondholders exchange their securities at a discount for new second-lien notes, according to people with knowledge of the situation. It will also extend the maturity on $600 million of convertible bonds held by Silver Lake for two years in exchange for first-lien priority on certain collateral.