01:57 PM EDT, 07/23/2024 (MT Newswires) -- AMC Entertainment's ( AMC ) debt restructuring is expected to significantly improve its balance sheet position and provide management with financial flexibility, Wedbush Securities said Tuesday.

After agreeing to a series of refinancing transactions that will extend the maturity of about $2.45 billion debt from 2026 to 2029 and beyond, Wedbush said AMC will likely raise more capital in the coming months via exchangeable notes and direct share issuances, but it has more work to do.

AMC needs to raise funds to cover its interest payments and conserve cash while incurring losses, the firm said. Wedbush is projecting a Q2 quarterly loss of $0.37 per share, narrower compared with its previous forecast of $0.46, saying box office trends exceeded prior estimates.

AMC shareholders are, however, resisting share issuances, it said.

"We expect AMC's shares to continue to be volatile as its shareholders may boost the share price, only to see it fall again after AMC issues shares," it said.

Wedbush is maintaining its neutral rating on the stock, though it raised the price target to $4 from $3.50.

Price: 5.09, Change: -0.19, Percent Change: -3.60