Private-equity firm Silver Lake, the theater chain’s second-largest holder, converted debt to 44.4 million AMC shares and sold them all on Jan. 27.
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AMC Entertainment Holdings ’ second-largest holder Silver Lake has sold its entire stake in the theater chain for $713 million.
Barron’s reported that private-equity firm Silver Lake was converting AMC (ticker: AMC) debt to stock earlier this week. In a form Silver Lake filed with the Securities and Exchange Commission Friday, the firm noted that it sold the resulting 44.4 million shares all on Jan. 27 at an average price of $16.05 each.
At the end of 2020, Silver Lake’s AMC convertible notes gave it a 21.3% ownership stake of the company’s publicly traded class A common shares. Silver Lake’s voting stake was much smaller, as China-based Wanda America Entertainment owned 51.8 million supervoting class B shares at the time. The class B shares carry three votes each while class A common shares carry one vote each. Wanda America controlled 58.8% of AMC’s voting power at the time.
Silver Lake didn’t immediately respond to a request for comment on the stock sale.
AMC stock has rocketed 525.5% so far this year amid a market-wide short squeeze.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
