AMC Can Now Issue Dividends, LABCS1453

The Butcher of Wall Street Marcel Kalinovic

🚨BREAKING NEWS🚨
#AMC CAN NOW ISSUE DIVIDENDS‼️

THE AMC BOND’S DEBT COVENANTS THAT HAVE PREVENTED ⁦‪@AMCTheatres‬⁩ FROM ISSUING DIVIDENDS, APPEAR TO HAVE BEEN PAID OFF BY AMC WITH THEIR FRESH INFUSION OF $325 MILLION IN CASH RAISED BY THEIR 40 MILLION SHARE ISSUANCE COMPLETED SEPT… pic.twitter.com/6StIWwEXEo

9/14/23, 2:02 AM

🚨BREAKING NEWS🚨

#AMC CAN NOW ISSUE DIVIDENDS‼️

THE AMC BOND’S DEBT COVENANTS THAT HAVE PREVENTED @AMCTheatres FROM ISSUING DIVIDENDS, APPEAR TO HAVE BEEN PAID OFF BY AMC WITH THEIR FRESH INFUSION OF $325 MILLION IN CASH RAISED BY THEIR 40 MILLION SHARE ISSUANCE COMPLETED SEPT 13, 2023‼️🤑💰

WHO PAYS DIVIDENDS⁉️

🩳🩳🩳 SHORTS ACCOUNTS 1ST AND FOREMOST ARE AUTOMATICALLY DEBITED BY BROKERS FOR THE FUNDS REQUIRED TO PAY DIVIDENDS TO LONG STOCKHOLDERS 😎🍻

To Quote @McSqueezyTheCow’s earlier tweet reply;

““Paying down debt early by exercising callable bonds saves a company interest expense and prevents the company from being put in financial difficulties in the long term if economic or financial conditions worsen.” [Investopedia]

If #AMC did, in fact, call back these #bonds, they would save a lot of money on whatever the remaining interest payment amounts would have been until these bonds matured in 2026

Additionally, the bonds shown in the screenshot are rated CCC- meaning they are high-yield bonds, as their credit worthiness is on the lower end. This just means, in terms of bond ratings, that the bonds have a higher likelihood of defaulting than higher rated bonds.

So, IF these bonds are gone, like I believe this post is suggesting, AMC would save money and should improve its overall credit rating, by eliminating debt that was rated unfavorably.

Further, being able to pay down debt, ESPECIALLY, in a higher inflationary environment bodes well for would-be investors, as it show’s strength on the company.”

Credit @McSqueezyTheCow

@MatthewDeCoy @RobertM59744294

and especially

@AmcPantheon for previously discussing the debt covenants with me ad-nauseum in the past to really drill this home.

As soon as I laid eyes on the bond dates, I realized these ARE, in fact the bonds whos covenants prevented a dividend issuance.

That dividend is now ON THE TABLE.

Could it have disappeared coincidentally? Yes…

But i don’t believe that to be the case.

In Jan and June 2021 it took a couple weeks from share issuance for the stock prices to run up THOUSANDS of %.

I won’t be surprised if that happens again.