Lions Gate swaps shares for $100 million 3.625%, 2.9375% convertibles

By Jennifer Chiou

New York, July 20 - Lions Gate Entertainment Corp. announced that it issued 16,236,305 common shares in exchange for about $100 million total of its senior subordinated convertible notes in a private transaction.

Specifically, $36,009,000 of its 3.625% convertible senior subordinated notes due 2025 and $63,709,000 of its 2.9375% convertible senior subordinated notes due 2024 were converted at an effective conversion price of $6.20 per share, a 2.8% premium to Monday's closing price.

The company said in a news release that the transaction is a key part of its previously announced plan to reduce its total debt as well as its nearer-term maturities.

The transaction was effected by the company's wholly owned subsidiary Lions Gate Entertainment Inc.

The notes were exchanged for new notes, which were identical to the old notes but had an extended maturity date and extended put rights by two years. The new notes were immediately convertible at an initial conversion rate of 161.2903 common shares per $1,000 of notes, the release said.

The new notes were subsequently converted into the 16,236,305 common shares.

Lions Gate is a Vancouver, B.C.-based producer and distributor of motion pictures, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content. Its shares closed at $6.53 apiece on Tuesday and at $6.03 apiece on Monday.

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