Lionsgate blocks Icahn, seals debt

MUMBAI: Lionsgate has refinanced $66.6 million of its debt in a private deal, at the last-hour, to shoo away billionaire investor Carl Icahn‘s take over attempts. Icahn had made an initial offer to purchase the debt at around 75 cents per dollar, an offer that was due to expire last Monday afternoon. Lionsgate signed deals with two bondholders and exchanged $66.6m of existing debt for new debt. The new debt pushes back the put date to 2015 from 2012. The put date is when bondholders can force Lionsgate to buy back its debt.

"We had an opportunity to do a private transaction on terms that were attractive for the bondholders and for the company," said Lionsgate vice-chairman Michael Burns in a statement. "Bondholders get a better trading instrument and lower strike price while Lionsgate gets a three-year extension on the first put date."

In a filing to Securities and Exchange Commission (SEC) last Monday, Lionsgate disclosed the deal. It also said that the debtholders have agreed not to sell any of their 2024 notes to Icahn via the "existing tender offer," which limits support for Icahn among Lionsgate‘s shareholders.

Earlier, in February, Lionsgate reported a loss of $93.4 million in the third quarter.

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