Making good on his promise to acquire $325 million of Lionsgate’s debt, Carl Icahn has offered to buy the notes for a 25 per cent discount on their face value, Bloomberg reports:
Icahn offered 75 cents on the dollar for $150 million of 2.94 per cent convertible senior subordinated notes due in 2024, and 73 cents on the dollar for $175 million of 3.63 per cent convertible senior subordinated notes due in 2025, he said in an e-mailed statement today.
Acquiring the debt at a discount means that Icahn would be able to increase his stake in the studio in an inexpensive way. Veteran entertainment analyst Harold Vogel told The Wrap last week that this cost-effective motive was a big reason for Icahn’s move.
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