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Mudrick Capital To Invest $100 Mln In AMC Entertainment - Quick Facts

Movie theatre operator AMC Entertainment Holdings, Inc. (AMC) said Friday it has entered into a commitment letter with investment firm Mudrick Capital Management LP, pursuant to which Mudrick has committed to purchase $100 million in aggregate principal amount of new 15%/17% Cash/PIK Toggle First Lien Secured Notes due 2026 to be issued by the company.

In a regulatory filing, AMC Entertainment noted that Mudrick Capital's commitment is subject to the satisfaction of certain conditions, including the payment of the commitment shares and consummation of the Second Lien Exchange.

The Notes, when issued, will bear cash interest at a rate of 15 percent per annum payable semi-annually in arrears on July 15 and January 15, beginning on July 15.

Interest for the first three interest periods after the issue date may, at AMC's option, be paid in kind at a rate of 17 percent per annum. Thereafter, interest shall be payable solely in cash.

As consideration for its commitment, Mudrick will receive a commitment fee equal to 8.24 million shares of AMC's Class A common stock.

Mudrick will also exchange $100 million aggregate principal amount of AMC's 10%/12% Cash/PIK Toggle Second Lien Subordinated Secured Notes due 2026 currently held by Mudrick, for 13.73 million shares of the company's Class A common stock, known as the Second Lien Exchange.

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