New Issue: Lions Gate $125 million convertible yields 2.9375%, up 36.5%

Nashville, Sept. 29 - Filmmaker Lions Gate Entertainment Corp. sold $125 million of 20-year convertible notes at par to yield 2.9375% with a 36.5% initial conversion premium via sole bookrunner SG Cowen & Co.

The overnight Rule 144A deal priced at the cheaper end of price talk for a 2.375% to 3.125% coupon and 36.5% initial conversion premium.

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.

Terms of the deal are:

Issuer:	Lions Gate Entertainment Corp.
Issue:	Convertible senior subordinated notes
Lead manager:	SG Cowen & Co.
Amount:	$125 million
Greenshoe:	$25 million
Maturity:	Sept. 30, 2024
Coupon:	2.9375%
Price:	Par
Yield:	2.9375%
Conversion premium:	36.5%
Conversion price:	$11.50
Conversion ratio:	85.9565
Contingent conversion:	120%
Call:	Non-callable for 5 years
Put:	In years 7, 10 and 15, in cash
Dividend protection:	Yes, conversion ratio adjustment
Takeover protection:	Yes, premium make-whole
Price talk:	2.375-3.125%, up 36.5%
Pricing date:	Sept. 28
Settlement date:	Oct. 4
Distribution:	Rule 144A

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.