The AMC Bust-Out – Players include Apollo, Silver Lake, Virtu, Citadel, and Goldman
Here's the short version of something I am working on – the AMC bust out.
The Bain Capital of AMC wasn't Wanda….it was Silver Lake Group LLC. The predatory lender ready to bust out the company. Wanda went into a deal with Silver Lake in 2018. I just stumbled into this while looking up "Bail out for AMC" and set the date for searching to Jan. 1 2017 – Dec 31 2019 as that is when I suspected something interesting would show up.
Why would something interesting show up? Because they have the same play-book that they have used every time but with a few different names swapped out.
They get an inside man in first that starts making poor business decisions, then a few years later a predatory loan gets offered and the news shows stories of hope (this is their pump tactic) to which they play the options game to lead it the direction they want, then all the poor decisions pile up and the company is left having nothing and has to file for bankruptcy.
Each time a predatory loan comes in from these bust out plays…it includes the loan being able to be redeemed in stock after a default or as normal re-payment, board seats, and other damaging agreements.
Guess what the terms to SLG offering a $600 million dollar agreement were?
Of the $600 million dollar senior unsecured convertible notes, AA's company must use $421 million (hehe they were so close) from Wanda to buy 24 million shares. Silver Lake on the other hand has 600 mil at 2.95% interest and redemption of the loan in shares at 20.50 per share at maturity in 2024.
600,000,000 at 2.95% is 617,700,000 dollars to buy shares at 20.50 per share which ends up being 30,131,707.317 shares. Another stipulation is that Silver Lake will get a seat on AMC's board and a two-year right of first refusal on certain future transfers of AMC shares by Wanda.
Wanda, after AMC's repurchase of $421 million in shares by the SL loan would have 38% of its original ownership that can be purchased by SL if Wanda tries to sell them in the two years following.
It should be no surprise that Silver Lake on 9/15/20 had 44,422,860 shares and on 1/29/21 they reported 0. Selling all the initial shares that they had from Wonda. What is even crazier is the notes, which are set to mature in 2024 carry an interest rate of 2.95 percent and are convertible into AMC Class A common shares at 20.50 per share. Silver Lake was the helping hand on the finance side with a predatory loan where it will be convertible to shares at a later date or if defaulted on. There were 117,212,000 shares as of December 31, 2020. Currently sitting at 513,330,000 as of September 30,2021. If the shorts realized they needed to cover…I think the sales of 241.62 million shares "At-the-market went to the sales agents hedge funds. 241.62 million shares were offered to Goldman, B Riley, and Citigroup. Those at the market offerings never hit the market because that was when they realized they can get fake green laser eyes to pump the shit out of it for them and 50% of trades are in dark pools. PFOF probably makes it so retail doesn't touch regular shares unless you DRS book.
In that same article covering the sale in September 2018, it says that AA was going to offer a 1.55 per share dividend when they were already 2 billion in debt and gave a previous dividend of .20 cents. Adam Arron went to AMC in 2015 after leaving Apollo in 2013 and has done nothing positive for the chain. He was the inside guy making reckless decisions like other bust out situations.
THERE IT IS. The inside guy, the predatory hedge fund, and a very interesting pattern.
– Also I have to mention that Silver Lake Group owns 50% of Virtu –
Nothing to see here.
Fintel is a majority of the source and then the 10-Q from August 7th, 2018. And the 10-Q for November 8, 2021.
Submitted January 14, 2022 at 06:10PM by DIAMONDHandsHotchy
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