AMC Backhair Silver Lake sold shares for $ 113 million profit

  • Silver Lake sold its shares in AMC Entertainment on Thursday for a profit of $ 113 million, the firm revealed.
  • The private-equity firm converted its debt into equity after Wednesday’s share-price jump to AMC.
  • Reddit’s day traders sent AMC, GameStop, and other stocks to a small squeeze this week.
  • For more stories visit the Business Insider homepage.

Silver Lake Partners, a private-equity firm and most recently, a major investor in AMC Entertainment, revealed in a regulatory filing on Friday that it had sold all of its equity in the company.

According to the filing, Silver Lake dumped its shares for $ 713 million on Thursday, a profit of about $ 113 million on the initial investment.

The move came close to the peak of AMC’s share-price rise this week, fueled in large part by Reddit day traders who targeted AMC’s short-sellers, GameTop, and other stocks, which have since been around $ There is a loss of 19 billion. AMC shares were up by 370% this week.

This week’s growth turned Silver Lake’s $ 600 million of convertible debt notes into action, allowing the company to exchange its risky debt for increased equity. According to a regulatory filing on Thursday, the debt was eventually swapped into stock at a price of $ 13.51.

In Friday’s filing, Silver Lake said it had sold its equity at an average share price of $ 16.05.

Read more: 40 insiders reveal the rise of Meteorite of Aegon Durban of Silver Lake, the No. 1 dealer of a tech-focused PE firm that has solidified its way to the top and is receiving over $ 18 billion for investment .

According to the Wall Lake Journal, Silver Lake originally scammed $ 600 million in AMC debt in 2018 and pumped an additional $ 100 million in debt into the company, and AMC was still warning that it would file for bankruptcy may have to. .

But nearly $ 1 billion in cash on Monday and a redit-fuel rally this week have helped AMC avoid that road.

Read more: Silver Lake placed a bold bet on the struggling AirBnB at the peak of the epidemic. Now the bet on the future of travel is paying off in a big way.

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