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Lions Gate Entertainment Corp. Message Board

  • gallery_pup gallery_pup Jul 20, 2010 4:15 PM Flag

    Finally: LGF responds by diluting Ichan

    and converting 100M in debt for equity of 16.2m shares. "Anticipated" 13.7% dilution brings stock down from $7 to $6.04, before Ichan's latest bid of $6.5.

    Lionsgate Completes Deleveraging Transaction
    3:42 pm ET 07/20/2010- PR Newswire
    SANTA MONICA, Calif. and VANCOUVER, British Columbia, July 20 /PRNewswire-FirstCall/ -- Lions Gate Entertainment Corp. (NYSE: LGF) (the "Company") announced that today it had completed a deleveraging transaction in which approximately $100 million of its senior subordinated notes were converted into common shares at an effective conversion price of $6.20 per share. The conversion price represented a 2.8% premium to Monday's closing price of the Company's common stock.

    The transaction is a key part of the Company's 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. ("LGEI") pursuant to the exchange of $36,009,000 in aggregate principal amount of its 3.625% Convertible Senior Subordinated Notes due 2025 and $63,709,000 in aggregate principal amount of 2.9375% Convertible Senior Subordinated Notes due 2024 in a private transaction. 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 and were immediately convertible at an initial conversion rate of 161.2903 Common Shares of the Company per $1000 of notes. The notes were subsequently converted into 16,236,305 common shares.

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20.70-0.29(-1.38%)Sep 23 4:02 PMEDT