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Silver Lake Scores $113 Million on AMC Stake Amid Reddit Rally

  • Private equity firm converted $600 million of bonds into stock
  • Cinema chain sees share price boom from day-trader enthusiasm
Pedestrians pass in front of an AMC movie theater in the Times Square neighborhood of New York.

Pedestrians pass in front of an AMC movie theater in the Times Square neighborhood of New York.

Photographer: Amir Hamja/Bloomberg

Silver Lake Management exited its equity stake in AMC Entertainment Holdings Inc., generating around $113 million after converting bonds to equity and selling the shares as the movie theater chain’s stock rallied.

The private equity firm converted $600 million of 2.95% bonds to equity at a price of $13.51 a share, according to a regulatory filing Friday. It then sold the 44.4 million shares for an average price of $16.05 during a Reddit-fueled rally in the company’s stock, according to calculations by Bloomberg. The gains disclosed Friday don’t include any possible offsets from hedging.