Lions Gate generates $45 million through sale of convertible notes

Proceeds applied toward acquisition of Summit Entertainment

By Angela McDaniels

Tacoma, Wash., Jan. 13 - Lions Gate Entertainment Corp. used $45 million of cash received from a newly issued series of convertible notes to help fund its acquisition of Summit Entertainment LLC.

The company bought Summit for a combination of cash and stock valued at $412.5 million, according to a company news release.

The rest of the purchase price was funded with cash on the balance sheet at Summit, $55 million of existing Lions Gate cash, $50 million of Lions Gate common stock and an additional $20 million of cash or stock to be issued at Lions Gate's option within 60 days.

J.P. Morgan Securities LLC, Barclays Capital Inc. and Jefferies & Co. were the bookrunners and lead arrangers on the financing for the acquisition.

Lions Gate's stock closed at $8.71 (NYSE: LGF) on Friday. Its market capitalization is $1.09 billion.

Lions Gate Entertainment is a filmed entertainment studio with headquarters in Vancouver, B.C. Its Lions Gate Entertainment Inc. subsidiary is based in Santa Monica, Calif.

Summit Entertainment is a motion picture studio based in Santa Monica.

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