Lions Gate overnight $125 million convertible talked at 2.375%-3.125% yield, up 36.5%

Nashville, Sept. 28 - Filmmaker Lions Gate Entertainment Corp. launched after Tuesday's close an overnight offering of $125 million of 20-year convertible notes talked to yield 2.375% to 3.125% with a 36.5% initial conversion premium.

SG Cowen & Co. is sole bookrunner of the Rule 144A issue.

The senior subordinated notes will be non-callable for five years, with cash puts in years seven, 10 and 15.

There is a 120% contingent conversion trigger.

Holders will have full dividend protection by way of a conversion ratio adjustment feature and cash takeover protection via a premium make-whole provision.

Proceeds are earmarked to repay outstanding amounts under Lions Gate's existing U.S. dollar bank revolver and term loan and may also be used for other general corporate purposes, including the financing of a portion of any future acquisitions.

Santa Monica, Calif.-based Lions Gate is a motion picture production company.

Lions Gate shares closed Tuesday up 9 cents, or 1.03%, to $8.79. In after-hours trading, the stock was last seen down 34 cents, or 3.87%, on the news of the convertible offering.

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