AMC bankers closed a timely $250mln share sale

AMC Entertainment (NYSE:AMC) has completed a well timed $250 million stock sale as ‘meme-stock’ traders keeps pushing the share price higher.

According to a filing, some 72.5 million shares were sold on Monday at $3.45 each, a price that in retrospect looks meager.

On one hand, the price was up more than 20% from Friday’s close.

But, on the other, AMC shares subsequently spiked to as high as $5.88 later on Monday. And today, the price rose above $8.00.

In other words, the stock bought by investors yesterday is today close to showing a three-fold gain.

The share offering was launched in March, as a means to pour fresh capital into the cinema company.

AMC in March said it would use the proceeds for general corporate purposes, to bolster liquidity, as well as to repay and/or refinance its debt.

At the end of March it held $624 million of cash and owed net debt of around $4.5 billion.

Wall Street investment banks Citigroup, Barclays, B. Riley Securities and Goldman Sachs handled the share sale.