Nashville, Feb. 18 - Lions Gate Entertainment Corp. sold $150 million of 20-year convertible notes at par to yield 3.625% with a 38% initial conversion premium via joint bookrunners JPMorgan Securities and SG Cowen & Co.
The Rule 144A overnighter priced at the cheap end of guidance for a 3.125% to 3.625% coupon and 38% to 43% initial conversion premium.
Proceeds will be used to repay outstanding debt under the company's existing U.S. dollar revolving credit facility and for other general corporate purposes, including possible acquisitions. The company said it also may use a portion of proceeds to repurchase stock, possibly in conjunction with the convertible offering, calls or call spreads to limit dilution from the conversion of the notes.
Lions Gate is a Santa Monica, Calif.-based motion picture company.
| Issuer: | Lions Gate Entertainment Corp.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunners: | JPMorgan Securities and SG Cowen & Co.
|
| Amount: | $150 million
|
| Greenshoe: | $25 million
|
| Maturity: | March 1, 2025
|
| Coupon: | 3.625%
|
| Price: | Par
|
| Yield: | 3.625%
|
| Conversion premium: | 38%
|
| Conversion price: | $14.28
|
| Conversion ratio: | 70.0133
|
| Contingent conversion: | No
|
| Contingent payment: | No
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call: | Non-callable for 7 years
|
| Put: | In year 7
|
| Price talk: | 3.125%-3.625%, up 38%-43%
|
| Pricing date: | Feb. 17, after market close
|
| Settlement date: | Feb. 24
|
| Distribution: | Rule 144A
|
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