Marathon Helped Lead Term Loan Talks on AMC Debt Restructuring

(Bloomberg) -- Marathon Asset Management was a main holder of AMC Entertainment Holdings Inc. loans that are being swapped under a debt restructuring plan and give those investors a new claim on US theaters, according to people with knowledge of the firm’s holdings.

Marathon didn’t confirm the terms of the swap, but is “happy to provide a refinancing solution to AMC,” according to Randy Raisman, co-head of U.S. Opportunistic Credit at the firm. “We have had complete confidence in AMC’s prospects as the industry-leading theater operator since investing in the company’s debt in the uncertain times following the pandemic.”

AMC declined to comment. Its debt restructuring, announced Monday, will push out the repayment of about $1.6 billion of debt. The company has been dealing with around $4.5 billion of long-term borrowings while attendance remains below pre-pandemic levels.

New York-based Marathon, which has about $23 billion of assets under management, led the transaction for term lenders. As part of the restructuring deal, driven by funds holding junior AMC debt, borrowings are being shifted to a different corporate unit, the people said.

Marathon Chief Executive Officer Bruce Richards revealed on Bloomberg TV in May that the fund had bought senior notes at about 60 cents on the dollar, before they rallied to near face value.

--With assistance from Thomas Buckley.