Santa Monica-based Lions Gate Entertainment Corp. (LGEC) announced today the pricing of a secondary public offering by certain investment funds affiliated with Carl Icahn of 19,201,000 of the Company’s common shares at a public offering price of $7 per share.
Upon completion of the offering, the investment funds affiliated with Carl Icahn will own approximately 3.1 percent of the LEGEC’s common shares.
The selling shareholders have also granted the underwriter an option that expires on October 18, 2011 to purchase up to an additional 2,879,985 common shares to cover over-allotments, if any.
The closing of the offering is expected to occur on Oct. 18, 2011, subject to the satisfaction of customary closing conditions. Piper Jaffray & Co. is acting as the sole underwriter in the offering.
LGEC will not receive any proceeds from the sale of the shares in the offering.
The offering is conducted in conjunction with the agreement that the Company had entered into with Carl Icahn and certain of his affiliates on Aug. 30, 2011.
Pursuant to such agreement the Company has the ability, for 35 business days following the date of the agreement, to designate one or more parties, including pursuant to a registered offering, to purchase from certain affiliates of Carl Icahn up to 22,080,985 common shares at a price of $7 per share.
The shares described above are being offered by the selling shareholders pursuant to a registration statement on Form S-3 previously filed with and declared effective by the Securities and Exchange Commission.
The offering may be made only be means of a prospectus supplement and the prospectus relating to the offering, copies of which may be obtained from Piper Jaffray & Co.
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