Cineplex greenshoe exercised, lifts convertibles to C$107.5 million

By Marisa Wong

Madison, Wis., Nov. 12 - Cineplex Inc. said the underwriters of its recent offering of five-year extendible convertible debentures exercised their C$7.5 million over-allotment option in full.

The company priced the original C$100 million of convertible debentures on Oct. 16 on a bought-deal basis at par to yield 4.5% with an initial conversion premium of 40.5%.

The debentures were sold via a syndicate of underwriters co-led by Scotia Capital Inc. and RBC Capital Markets.

The debentures are convertible at a rate of C$56.00 per share.

The securities are non-callable until Dec. 31, 2016 and then are provisionally callable if the shares trade at 125% of the conversion price for 20 consecutive trading days. There is takeover protection.

Proceeds will be used to finance the previously announced acquisition of select theatres from Empire Theatres Ltd.

The debentures have been listed on the Toronto Stock Exchange under the symbol "CGX.DB.A."

Toronto-based Cineplex is a motion picture exhibitor.

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