IMAX Raises $200M Via Convertible Senior Notes Offering

Imax Corp 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.