AMC Theaters shares fall after revealing a new cash raise to pay down costly debt

Shares in AMC Theaters fell on Tuesday as the giant movie theater chain unveiled a new cash raise to pay down hefty debt after a strong opening weekend at the box office. Toy Story 5.

The day began with parent company AMC Entertainment Holdings announcing that it had a deal to sell 95.25 million shares at $2.10 per share to raise about $200 million in new capital. AMC said it will use approximately $189 million of net proceeds after underwriting fees to repay $125 million of 6.125 percent senior notes in interest expense due in 2027 and for general corporate purposes.

AMC shareholders did not react well to the company’s latest move to reduce its high debt load, with the movie theater giant’s stock falling 74 cents, or nearly 27 percent, to $2.02 in early morning trading on the New York Stock Exchange. The world’s largest cinema exhibitor announced a stock increase after touting its best weekend box office so far in 2026 with… Toy Story 5 A debut from Pixar and Disney.

“Seeing multiple films across multiple genres performing well at the same time is an encouraging sign for the theatrical business,” Adam Aron, chairman and CEO of AMC Entertainment, said in a statement Monday. “With so many major releases hitting theaters especially in July and throughout the summer, we expect this momentum to continue.”

The movie theater chain secured earlier agreements with creditor groups, debt holders and other lenders to give it more financial flexibility so it can focus on capitalizing on Hollywood’s box office at local movie theaters. On June 13, AMC announced it had closed a $150 million at-market stock offering launched in February to bolster its balance sheet.

AMC Theaters’ debt refinancing deals are intended to give the movie theater chain breathing room on its balance sheet to repay long-term loans. In order to replace new debt with existing loans, AMC typically had to put up collateral and related intellectual property.

AMC Theaters noted that it had total corporate borrowings of just under $4 billion for the third quarter ending September 20, 2025.

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