AMC Entertainment's stock rockets after liquidity update, private debt offering

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Shares of AMC Entertainment Holding Inc. were vaulted 52% higher in premarket trading Friday, after the movie theater operator said it believed it had enough liquidity to withstand suspension of operations until a partial reopening ahead of Thanksgiving. That comes after the company announced late Thursday that it commenced a private offering of $500 million of first lien notes due 2025. The company said it was currently generating effectively no revenue as all of its theaters have suspended operations through the end of June in response to the COVID-19 pandemic. Among measures the company has taken to preserve cash, AMC said it doesn't expect to continue dividend payments or make any share repurchases this year, is working with landlords to defer costs, has furloughed all domestic theater-level employees and many corporate-level employees and cut salaries. The stock has plunged 66.5% over the past three months through Thursday, while the S&P 500 has lost 15.9%.