By Abigail W. Adams
Portland, Me., March 17 – IMAX Corp. priced $200 million of five-year convertible notes after the market close on Tuesday at par with a coupon of 0.5% and an initial conversion premium of 35%, according to a company news release.
Pricing came at the rich end of talk for a coupon of 0.5% to 1% and an initial conversion premium of 30% to 35%, according to a market source.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Citigroup Global Markets Inc. were joint bookrunners for the Rule 144A offering, which carries a greenshoe of $30 million.
The notes are non-callable until April 6, 2024 and then subject to a 130% hurdle.
The notes are putable upon a fundamental change.
There is dividend protection.
They will be settled in cash, shares or a combination of both at the company’s option.
In connection with the offering, the company entered into capped call transactions with a cap price of $37.275, which represents a premium of 75% over the last reported sales price of stock.
Proceeds will be used to cover the cost of the call spread, approximately $150 million will be used to repay outstanding debt under its corporate credit facility, with remaining amounts to be used for general corporate purposes.
IMAX is a New York-based theater chain.
| Issuer: | IMAX Corp.
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| Securities: | Convertible senior notes
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| Amount: | $200 million
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| Greenshoe: | $30 million
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| Maturity: | April 1, 2026
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| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Citigroup Global Markets Inc.
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| Coupon: | 0.5%
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| Price: | Par
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| Yield: | 0.5%
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| Conversion premium: | 35%
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| Conversion price: | $28.76
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| Conversion rate: | 34.7766
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| Call options: | Non-callable until April 6, 2024 and then subject to a 130% hurdle
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| Put options: | Upon a fundamental change
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| Pricing date: | March 16
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| Settlement date: | March 19
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| Distribution: | Rule 144A
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| Talk: | Coupon of 0.5% to 1% and initial conversion premium of 30% to 35%
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| Stock symbol: | NYSE: IMAX
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| Stock price: | $21.30 at market close March 16
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| Market capitalization: | $1.26 billion
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