Debt ratings agency S&P Global Ratings has reduced AMC Entertainment's credit ratings due to concerns over its new debt deal with bondholders.
The research firm downgraded AMC's credit rating to SD (selective default) from CC. AMC recently unveiled a debt restructuring agreement with its bondholders that includes $200 million in fresh cash and the Silver Lake Group purchasing $100 million in new senior notes.
The $200 million was made available through a rights offering of new subordinated debt to allow holders of AMC's existing subordinated notes to exchange their securities at a discount for new debt to be issued by the company.
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