Lionsgate calls 4.875% convertibles

By Laura Lutz

Des Moines, Oct. 18 - Lionsgate will redeem its outstanding 4.875% convertible senior subordinated notes due 2010, according to a company news release.

Holders may choose to convert the notes any time before close of business on Dec. 14.

On Dec. 15, the company will pay the principal amount plus accrued interest for all notes that remain outstanding.

The company issued $60 million of the notes in December 2003.

"By redeeming and converting these notes, we are eliminating approximately $2.9 million of interest cost each year and continuing to strengthen our balance sheet," Lionsgate vice chairman Michael Burns said in the release.

Lionsgate is an entertainment studio based in Santa Monica, Calif.

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