AMC engages Citigroup as underwriter for preferred shares

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AMC Entertainment Holdings Inc announced on Monday that it has hired Citigroup as an underwriter to help it sell up to 425 million units of its preferred stock, APE.

The movie chain, however, warned potential investors that investing in APE could involve « losing all or a substantial portion of your investment » given the recent fluctuation in the prices of preferred stock and the underlying shares of AMC Entertainment. .

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AMC stock and the preferred stock fell about 4% each after the announcement.

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The company also said Citigroup would receive a 2.5% per unit sold discount for the first gross sales of $250 million of APE units, and a 1.5% per unit sold discount for gross sales of 250 million. next million dollars. It can also sell APE shares to Citigroup.

Monday’s development comes after AMC Entertainment announced on August 5 that APE was a special shareholder dividend and a way to raise capital in the future.

But APE’s value has nearly halved since it began trading on the New York Stock Exchange on August 22, while AMC itself has slid to its lowest level in nearly two months, investors worried about possible dilution of value due to the new security.

APE holds a 1/100th fractional interest in a Series A common stock of AMC Entertainment. (Reporting by Yuvraj Malik in Bengaluru; Editing by Uttaresh.V)