AMC Entertainment Holdings Inc. has secured a $425 million senior secured credit facility from Deutsche Bank AG to refinance its Odeon unit's 12.75% notes due in November 2027. The cinema chain operator abandoned a planned $2.5 billion debt offering after turbulence in public markets made traditional financing routes unviable.

Under the agreement, AMC can repay the new loan at 102 cents on the dollar if it refinances both its Muvico and Odeon debt within one year. The deal includes a two-year non-call provision that would make refinancing just the loan more expensive. This alternative financing approach reflects broader market challenges as AI-driven disruption fears and Middle East conflict tensions push up refinancing costs in the US leveraged loan market.

The new credit facility is expected to strengthen AMC's balance sheet, extend debt maturities, and reduce interest rates while preserving flexibility to streamline its capital structure. The company sees a significant opportunity to close underperforming theaters and is betting on a strong slate of films planned for the next couple of years to improve its fortunes.