AMC Networks announced plans to raise $125 million through a debt financing via five-year convertible senior notes; shares fell over 30% after the news.
AMC Network, the TV company (not the cinema operator) announced a new bond sale that aims to raise $125 million of new capital.
The stock fell more than 30% in reaction to the news, falling to $10.70 in Monday’s dealing.
It intends to issue a series of five-year convertible senior notes.
“AMC Networks expects to use the net proceeds from the offering for general corporate purposes, which may include the repayment of indebtedness,” the company said in a stock market statement.
In last month’s first quarter earnings report AMC boasted that it had strengthened its balance by completing a series of financing transactions that meaningfully extended its debt maturities.
Through March and April it undertook multiple refinancing of senior debt securities.
“[the refinancings] create substantial flexibility for us as we continue to leverage our core strengths and reorient our business around the consumer-driven changes that are happening across the industry,” chief executive Kristin Dolan said in May.
Dolan added: “creates substantial flexibility for us as we continue to leverage our core strengths and reorient our business around the consumer-driven changes that are happening across the industry."
It comes as AMC Networks has been rolling out the first phase of its spin-off shows in the Walking Dead ‘universe’ – which included “The Walking Dead: The Ones Who Live”, “The Walking Dead: Dead City”, and “The Walking Dead: Daryl Dixon”.
