Icahn Prices Lionsgate Debt

NEW YORK: Billionaire investor Carl Icahn has offered to buy up to $325 million of Lionsgate’s debt as he seeks to exert further influence on the independent studio.

Icahn has already amassed a 14.5-percent share of the company. He is now offering 75 cents on the dollar for $150 million of 2.94 percent convertible senior subordinate notes due 2024, and 73 cents on the dollar for $1.75 million of 3.6 percent convertible senior subordinate notes due 2025.

Relations between the two parties have been strained, and last week talks over Icahn’s request to replace three board members broke down when he refused to stop accumulating stock in the independent film and TV studio beyond the 20-percent mark. If the debt bonds are converted into common shares, Icahn could see his stake rise to about 30 percent, reports indicate.