AMC Entertainment Holdings Inc (NYSE:AMC) shares are trading lower Monday after the company entered into an equity distribution agreement.
What Happened: AMC has entered into an equity distribution agreement to allow for the sale from time to time of up to a maximum of 425 million AMC Preferred Equity Units (NYSE:APE).
The company said the agreement is designed to provide significant flexibility in achieving AMC's goals over time. AMC intends to use the net proceeds, if any, primarily to repay, refinance, redeem or repurchase the company's existing indebtedness.
AMC is not obligated to sell any AMC Preferred Equity Units under the agreement and may at any time suspend solicitation and offers. The equity distribution agreement allows AMC to control the timing, amount and pricing of any future sales, subject to, among other things, market conditions and trading volumes.
AMC owns, operates or has interests in theatres located across the United States and Europe.
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AMC Price Action: AMC has a 52-week high of $34.33 and a 52-week low of $7.65.
The stock was down 3.5% at $7.71 at time of publication, according to Benzinga Pro.
Photo: Dave Dugdale from Flickr.