IMAX extends tenders for 7 7/8% notes, ups consent fee and total payment

New York, Nov. 20 - IMAX Corp. said that it extended its previously announced tender offer for its outstanding 7 7/8% senior notes due 2005 and the related consent solicitation and raised the consent payment it is offering.

The consent deadline was extended to 12.01 a.m. ET on Dec. 4 from the original 5 p.m. ET on Nov. 20, and the expiration was extended to 9 a.m. ET on Dec. 18 from the original 9 a.m. ET on Dec. 11, with both deadlines subject to possible further extension.

It raised the consent fee it is offering for notes tendered by the consent deadline to $7.81 per $1,000 principal amount, from the original $2.50 per $1,000, and said the total consideration to be paid for those notes would thus be raised to $1,025 per $1,000 principal amount from $1,019.69 per $1,000 originally. There was no change in the basic tender offer consideration, without consent fee, of $1,017.19 per $1,000.

As previously announced, IMAX, a, Toronto-based motion picture technology company and theater operator, said on Nov. 12 that it had begun a cash tender offer for all $152.8 million of its outstanding 7 7/8% notes and was also soliciting noteholder consents to proposed indenture amendments that would eliminate substantially all of the covenants and certain events of default.

It initially set 5 p.m. Nov. 20 as the consent deadline and said that the offer would expire at 9 a.m. ET on Dec. 11 (both deadlines have now been extended).

The company said the tender offer would be subject to various conditions, including the receipt of consents necessary to approve the amendments to the notes' indenture, and a financing condition. ( It separately announced plans to sell up to $160 million of new senior notes due 2010 and use the proceeds to fund the tender offer and consent solicitation. High yield syndicate sources said the company sold $160 million of new 9 5/8% senior notes due 2010 at par on Nov. 19).

IMAX said that it intends to redeem all senior notes not tendered and accepted for payment shortly after the expiration or termination of the tender offer at a redemption price of $1,019.69 per $1,000 principal amount, plus accrued and unpaid interest up to, but not including, the redemption date.

Credit Suisse First Boston is the dealer manager and solicitation agent (800 820-1653 or collect at 212 325-3175, in Canadian call collect 416 352-4506). The information agent is MacKenzie Partners, Inc. (800 322-2885 or collect at 212-929-5500).

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