Lions Gate greenshoe exercised, raising convertibles to $60 million

New York, Dec. 4 - Lions Gate Entertainment Corp. said underwriters of the recent offering of convertible senior subordinated notes due 2010 sold by its Lions Gate Entertainment Inc. subsidiary exercised the $10 million over-allotment option in full, raising the size of the deal to $60 million.

The Vancouver, B.C. film company originally sold $50 million of the securities after the market closed on Nov. 26 to yield 4.875% with a 29.19% initial conversion premium.

Bookrunner for the Rule 144A deal was SG Cowen.

Lions Gate said it may use part of the proceeds to help finance its acquisition of Artisan Entertainment. If the Artisan acquisition does not occur and notes remain outstanding after a special repurchase or redemption the proceeds may be used for repayment of existing indebtedness and for general corporate purposes. If the Artisan acquisition does occur, Lions Gate may use part of the proceeds to repurchase outstanding common shares and preferred shares.

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