IMAX Raises $200M Via Convertible Senior Notes Offering
Imax Corp (NYSE: IMAX) priced $200 million 0.5% convertible senior notes due 2026 in a private institutional offering to raise $193.3 million.
IMAX also granted the initial purchasers of the notes 13 days to purchase additional notes up to $30 million.
The notes would accrue interest at 0.5% p.a., payable semi-annually on April 1 and October 1 of each year, beginning on October 1, 2021.
The initial conversion rate of 34.7766 shares per $1,000 principal amount of notes represented an initial conversion price of $28.75 per share, signifying a 35% premium over the closing price of $21.30 per share on March 16, 2021.
IMAX plans to utilize $150 million of the offering proceeds for debt repayment under its credit facility and the remainder for working capital or other general corporate purposes.
IMAX has entered into capped call transactions with certain financial institutions to offset the potential stock dilution from any note conversion. The capped call transactions’ initial cap price is $37.2750, representing a 75% premium to the March 16 closing price.
IMAX’s book debt amounted to $305.7 million as of December 31, 2020.
Price action: IMAX shares traded higher by 1.27% at $21.57 on the last check Wednesday.
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