Investors are dumping bonds tied to the world’s biggest movie theater chain, betting that attendance will remain low despite venues reopening in major markets. The company’s $500 million bond due April 2025 was quoted around 60.5 cents on the dollar Thursday, down from 91 cents in early September. Shares rose more than 16% on Monday following the company’s announcement that it would open a dozen locations in New York state at 25% capacity. A day later, the company said it would sell $50 million in shares to bolster its balance sheet. But bond investors, who typically focus on a borrower’s ability to pay their bills and interest payments, remain pessimistic.

Source: Wall Street Journal October 22, 2020 16:52 UTC