Another debt haircut in the market AMC announced plans to launch an exchange offer for four sets of subordinated notes with new notes. Three of the sets, which are dollar denominated, are trading at deeply distressed levels in the range of 26 to 27 cents on the dollar. A Bloomberg analyst said the exchange could potentially replace about $2.3 billion of subordinated debt with $1.2 billion of new secured debt.
If noteholders opt to accept the exchange offer before June 16, they will receive around $520 to $530 in new secured notes for every $1,000 in existing notes. This amount falls closer to $500 after the early exchange date, and the final exchange offer expires June 30.