AMC Entertainment said Tuesday that it has signed a transaction support agreement with key creditor groups under which it will raise $223 million to refinance its debt maturing next year.

Shares of AMC slid over 7% in premarket trading on the news.

This move will allow for the immediate equitization of at least $143 million of existing debt, with the option of equitizing up to $337 million of existing debt.

The company said this step contributes to a complete resolution of litigation with certain holders of AMC's 7.5% senior secured notes due 2029.