11:25 AM EDT, 07/01/2025 (MT Newswires) -- AMC Entertainment ( AMC ) said Tuesday that it secured more than $200 million in new funding as the movie theater company looks to refinance debt maturing next year.

The company entered into a transaction support agreement with certain noteholders and lenders.

As part of that agreement, holders of 7.5% senior notes due in 2029 will provide $223.3 million in new financing and exchange $590 million of existing debt for $825.1 million of new securities. These holders agreed to dismiss an ongoing litigation with AMC.

In addition, AMC will convert at least $143 million of notes due 2030, with the potential to equitize up to $337 million of existing debt.

Shares of AMC slid 7.3% in Tuesday trade.

"The successful signing of this transaction support agreement is yet another important and strategic move, as AMC continues to fortify our financial footing, and improve the trajectory of our post pandemic recovery," Chief Executive Adam Aron said in a statement.

Movie-theater attendance took a sharp hit during the COVID-19 pandemic and was also dented by Hollywood writer and actor strikes in 2023 that delayed production. Aron said Tuesday that there have been positive signs for the industry since April.

"The domestic box office in the second quarter of 2025 is up impressively compared to the same period last year, and our full-year industry projections point to the strongest box office performance in five years," he said.

The US box office recorded $2.66 billion in the second quarter, compared with $1.95 billion in the prior-year period, according to data from BoxOfficeMojo, which is owned by Amazon.com's (AMZN) IMDb. Domestic theaters raked in $124.1 million from Friday to Sunday, led by Apple (AAPL) and Warner Bros. Discovery's (WBD) "F1: The Movie."

"We further anticipate more improvement in the domestic industry box office next year too, such that in our view 2026 also will show continued growth and momentum," Aron said.

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