Lions Gate exchanges $99.72 million of convertibles held by Kornitzer

By Angela McDaniels

Tacoma, Wash., July 21 - Lions Gate Entertainment Inc. said the convertible notes exchanged in its recently completed private transaction were held by Kornitzer Capital Management, Inc.

The exchange was announced in a news release on July 20, and some further details were included in an 8-K filed with the Securities and Exchange Commission on July 21.

The company issued new notes in exchange for $36,009,000 of 3.625% convertible senior subordinated notes due 2025 and $63,709,000 of 2.9375% convertible senior subordinated notes due 2024.

The holder received a principal amount of new notes equal to the principal amount of the old notes exchanged.

The new notes were identical to the old notes except for an extended maturity date and extended put rights by two years.

The new notes were immediately convertible at a rate of 161.2903 shares per $1,000 principal amount of notes, and they were converted into 16,236,306 common shares on July 20.

The effective conversion price was $6.20 per share, which is a 2.8% premium to the closing stock price on July 19.

The company is a Santa Monica, Calif.-based subsidiary of Lions Gate Entertainment Corp., which is a filmed entertainment studio with headquarters in Vancouver, B.C.

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