New Issue: Lion's Gate $50 million convertible yields 4.875%, up 29.19%

Nashville, Dec. 1 - Lion's Gate Entertainment Corp. sold $50 million of seven-year convertible notes at par to yield 4.875% with a 29.19% initial conversion premium via bookrunner SG Cowen.

The Rule 144A issue sold at the aggressive end of guidance that put the yield at 4.75% to 5.25% with a 25% to 30% initial conversion premium.

The company did not specify how the proceeds of the issue would be used.

Terms of the deal are:

Issuer:	Lion's Gate Entertainment Corp.
Issue:	Convertible senior subordinated notes
Lead manager:	SG Cowen
Amount:	$50 million
Greenshoe:	$10 million
Maturity:	Dec. 15, 2010
Coupon:	4.875%
Price:	Par
Yield:	4.875%
Conversion premium:	29.19% over Nov. 26 closing price of $4.18
Conversion price:	$5.40
Conversion ratio:	185.0944
Call:	Non-callable for 3 years, then with 175% hurdle
Price talk:	4.75-5.25%, up 25-30%
Pricing date:	Nov. 26, after the close
Settlement date:	Dec. 3
Distribution:	Rule 144A

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