Icahn to launch tender offer for Lions Gate's convertibles

By Jennifer Chiou

New York, March 19 - Lions Gate Entertainment Corp. investor Carl Icahn said a tender offer by Icahn and his affiliates for Lions Gate Entertainment Inc.'s $150 million of 2.9375% convertible senior subordinated notes due 2024 and $175 million of 3.625% convertible senior subordinated notes due 2025 is set to begin on Friday.

For each $1,000 of principal amount, Icahn's group said it will pay $750 for the 2.9375% convertibles and $730 for the 3.625% convertibles plus accrued interest to the purchase date.

As previously noted, Icahn had been in discussions with the company about adding some designees to the board of directors. In a prior statement included in a schedule 13D/A filing with the Securities and Exchange Commission, Icahn said these discussions were recently terminated because agreement could not be reached about some aspects of the standstill agreement that Lions Gate required as a condition to installing those board members.

The investor and his affiliates own 14.5% of the company's common stock.

D.F. King & Co., Inc. (Edward McCarthy or Kristian Klein at 212 269-5550) is the information agent.

Lions Gate is a Santa Monica, Calif., entertainment studio.

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