AMC $5.66 - It's Not What You Think!⚠️Demystifying Convertible Bonds

AMC $5.66 - It's Not What You Think!⚠️Demystifying Convertible Bonds. On July 22, 2024 AMC Entertainment (NYSE:AMC) restructured their debt to include $414M in convertible notes due in 2030. The conversion price is $5.66. Subsequent to that CEO Adam Aron said at a conference that the bonds would convert 'automatically' at $5.66. However there is no evidence (that I can find anyways) that the bonds will convert automatically, but rather at the option of the bond holder. In this video you will see a breakdown of how convertible bonds are valued, and there is discussion on why most convertible bond holders to not convert until close to the bond maturity date.

Due Diligence Links:
1) AMC 8-K July 22, 2024: https://bit.ly/4fFbXoF
2) Latham & Watkins - Demystifying Convertible Notes: https://bit.ly/3PdqdtQ
3) Investopedia: https://www.investopedia.com/investing/introduction-convertible-bonds/
4) JH Investments on Convertible Notes: https://bit.ly/3DJbRio
5) UBS on Convertible Notes: https://bit.ly/3ZTUl2s

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DISCLAIMER: Content, strategies and opinions on this channel are for entertainment purposes only. These are Tony's opinions, not specific investment or legal advice for you. Always do your own due diligence, read company filings and financial statements and seek a duly licensed professional for investment, tax or legal advice. Past performance is not a predictor of future results. This is not personalized but rather general educational and informational material.