The Spread Between AMC and APE Shares Is Narrowing
- AMC commmon shares slump, APE preferred unit jumps on Tuesday
- Proposed settlement fuels optimism on traders’ conversion bets
This article is for subscribers only.
The gap between AMC Entertainment Holdings Inc.’s common-stock price and its preferred shares is narrowing significantly, as a lawsuit settlement boosted expectations that the conversion between the two units will go through.
The movie theater operator’s common AMC stock slumped 23% to $3.91 on Tuesday, while the preferred shares — ticker APE — jumped 14% to $1.68. That put the spread at $2.23, shrinking from $3.63 at Monday’s close and at its tightest level since February. The company announced the one-for-one exchange proposal last year as part of AMC’s broader strategy to raise cash and keep the lights on.