All articles tagged with #debt refinancing
Originally Published 6 months ago — by AMC Entertainment Holdings, Inc.
AMC Entertainment has reached a creditor agreement to strengthen its financial position by securing $223 million in new financing, converting at least $143 million of debt into equity, and resolving litigation with noteholders, all while benefiting from a recovering box office industry that supports its ongoing recovery efforts.
Originally Published 1 year ago — by Fox Business
US companies face a "slowly unfolding crisis" as they approach a refinancing cliff that could cost them an additional $381 billion in interest by 2030 due to high interest rates. The largest impact is expected in 2024, with $3 trillion in loans and bonds maturing. The Federal Reserve's elevated rates, aimed at curbing inflation, have led to rising default rates and financial strain on businesses, with many unprepared for the increased costs. This situation could lead to higher prices, squeezed margins, and potential liquidity crises for some companies.
Originally Published 2 years ago — by Yahoo Finance
Spirit Airlines is facing financial distress with deeply distressed bond prices and about $2.5 billion in debt, despite its relatively young fleet. The airline is seeking to refinance upcoming debt maturities and exploring options such as sale-leaseback deals on its planes. However, its slim margins and cash burn pose challenges for refinancing, and its remaining financing options may require creativity. With its fleet already pledged as collateral on existing debt, the airline's survival hinges on convincing investors of its viability as an independent-going enterprise.
Originally Published 2 years ago — by CNBC
Shares of UK's Metro Bank surged 26% after the lender announced it had secured a £325 million capital raise and £600 million in debt refinancing. The capital raise includes £150 million of new equity and £175 million of bail-in debt. Colombian banker Jaime Gilinski Bacal, an existing shareholder, led the raise and now holds a controlling 53% stake. The bank plans to shift towards specialist mortgages and commercial lending, while also exploring the sale of up to £3 billion of residential mortgages. The announcement follows concerns raised by regulators last month regarding the bank's internal risk models for mortgages.
Originally Published 2 years ago — by Reuters.com
Metro Bank, a British bank facing multiple setbacks in recent years, has secured a £325 million capital raise and a £600 million debt refinancing. Colombian billionaire Jaime Gilinski, the bank's largest investor, will take majority shareholder control. Bondholders will face a hit and switch to higher interest-paying bonds. The bank aims to strengthen its balance sheet after accounting errors, leadership departures, and delayed regulatory approval. The capital raise includes new equity and bail-in debt issuance. The deal also involves a restructuring of debts and discussions regarding the sale of residential mortgages.
Originally Published 2 years ago — by Reuters
Debt-laden companies across Europe, Middle East, and Africa are facing a $500 billion refinancing challenge in the first half of 2024, which could lead to the demise of many "zombie" businesses. As interest rates rise and banks tighten risk ahead of stricter capital rules, weaker companies are seeking new loans and debt deals just as government borrowing costs soar globally. Failure to secure affordable cash could result in insolvencies and layoffs. Signs of distress are already evident, with corporate insolvencies in England and Wales up 19% in August. The Bank of England has warned lenders about the risk of corporate loan defaults, and some banks are referring more small businesses to their restructuring teams. The looming refinancing task, coupled with tougher capital rules for banks from 2025, is expected to strain support for struggling companies.