Kornitzer Capital buys notes at par with 29.03% conversion premium
By Devika Patel
Knoxville, Tenn., April 15 - Lions Gate Entertainment Corp. subsidiary Lions Gate Entertainment Inc. completed a $60 million placement of 1.25% convertible senior subordinated notes with Kornitzer Capital Management, Inc. on April 15, according to an 8-K filed Monday with the Securities and Exchange Commission.
The notes are due April 15, 2018, and are convertible into common stock at an initial conversion price of $30.00 per share, representing a 29.03% premium to the closing share price on April 12, $23.25. The notes were sold at par.
U.S. Bank NA is the trustee.
Proceeds will be used to pay down higher interest rate debt.
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.
| Issuer: | Lions Gate Entertainment Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Amount: | $60 million
|
| Maturity: | April 15, 2018
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Conversion price: | $30.00
|
| Conversion premium: | 29.03%
|
| Warrants: | No
|
| Investor: | Kornitzer Capital Management, Inc.
|
| Settlement date: | April 15
|
| Stock symbol: | NYSE: LGF
|
| Stock price: | $23.25 at close April 12
|
| Market capitalization: | $3.01 billion
|
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