New York, June 29 - Cineplex Galaxy Income Fund said it priced a $105 million offering of convertible extendible unsecured subordinated debentures with a 6% coupon and an C$18.75 conversion price.
RBC Capital Markets, Scotia Capital Inc. and National Bank Financial Inc. are joint lead managers of the bought-deal financing. Cineplex Galaxy will also sell 6.835 million subscription receipts at C$16.10 each for a total of C$110 million via the same syndicate.
Proceeds will be used to help finance the acquisition of the Famous Players movie exhibition business from Viacom Inc.
The subscription receipts will be exchangeable for units on closing of the acquisition.
Cineplex Galaxy is a Toronto-based movie theater operator.
| Issuer: | Cineplex Galaxy Income Fund
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| Issue: | Convertible extendible unsecured subordinated debentures
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| Amount: | C$105 million
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| Maturity: | Aug. 31, 2005, extendible to Dec. 31, 2012 on closing of acquisition
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| Coupon: | 6%
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| Conversion premium: | 16.5% above C$16.10 price for subscription receipts
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| Conversion price: | C$18.75
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| Conversion ratio: | 53.33
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| Call: | Dec. 31, 2008 onwards
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| Pricing date: | June 28, after close
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| Settlement date: | July 21
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| Lead managers: | RBC Capital Markets, Scotia Capital Inc., National Bank Financial Inc.
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| Distribution: | Short-form prospectus in all Canadian provinces
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