AMC Entertainment Holdings Inc ( AMC ) shares are falling Tuesday. The company announced an agreement with creditors to strengthen its balance sheet.

What To Know: AMC entered into a Transaction Support Agreement with creditors, including holders of 62% of its 7.5% Senior Secured Notes due 2029, holders of 76% of Muvico’s 6%/8% Senior Secured Exchangeable Notes due 2030 and certain term loan lenders.

AMC will gain approximately $223.3 million of new money financing, which it expects to use to refinance debt maturing in 2026. The company will also immediately convert at least $143 million of its 6%/8% Senior Secured Exchangeable Notes due 2030 with the potential to equitize up to $337 million of the notes over time. The agreement will also result in a full resolution of litigation with certain holders of its 7.5% Senior Secured Notes due 2029.

“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,” said Adam Aron, chairman and CEO of AMC.

“We continue to make positive advances, at a time when we also are riding the powerful wave of a recently resurgent industry-wide box office that commenced in April of this year.”

AMC said the domestic box office is “up impressively” year-over-year in the second quarter. The company anticipates full-year box office performance to be the strongest in five years, and also forecasts continued growth and momentum in 2026.

Aron said the company is “playing on offense again,” with new initiatives that include expanding large format screens, renovating high-grossing theaters, new discount strategies and enhancements to its subscription programs.

AMC Price Action: AMC shares are down approximately 27.5% year-to-date and have fallen nearly 45% over the past year. The stock was down 8.06% at last check Tuesday, trading at $2.85, per Benzinga Pro data.

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