(Bloomberg) — Marathon Asset Management bought AMC Entertainment Holdings Inc. debt when it traded at a deep discount and the cinema chain’s latest meme-stock rally has only made those holdings more attractive, Chief Executive Officer Bruce Richards said on Bloomberg Television Wednesday.

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The hedge fund bought senior secured AMC debt when it was changing hands for some 60 cents on the dollar and which has since rallied to more than 90 cents, Richards said. The cinema chain’s stock surge this week — sparked by the return of Keith Gill, known online as “Roaring Kitty” to social media — and subsequent equity raise gave debtholders a bigger safety cushion, he said.

“We’re earning 15% senior secured liened up against all their assets” and have all the downside protection that debt provides, Richards said, adding that it’s “thanks to Roaring Kitty and all the meme fan club that is buying AMC.”

AMC Entertainment Holdings has been taking advantage of its rally to reduce its debt, revisiting a playbook that helped it shore up liquidity in 2021.

“I love it for us,” Richards said.

–With assistance from Eliza Ronalds-Hannon.

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