RHI Sets Price for IPO

NEW YORK, June 18: RHI
Entertainment is set to bring in $189 million from its initial public offering
of 13.5 million shares at $14 each.

According to wire reports,
the $14 price tag is lower than the $16 to $18 the company had hoped for. All of
the shares are being sold by RHI, which has granted the underwriters—led
by J.P. Morgan Securities Inc. and Banc of America Securities—a 30-day
option to purchase an additional 2,025,000 shares.

The proceeds of the IPO
will be used to repay an existing senior second lien credit facility in full,
to fund affiliate KRH Investments’ repayment of an unsecured term loan facility
and to fund other fees and expenses.

RHI Entertainment was
previously a publicly listed company, before being sold to Hallmark Cards in
1994 and being rebranded as Hallmark Entertainment. Robert Halmi Sr. and Robert Halmi Jr. led the buyout of Hallmark
Entertainment in 2006. The New York-based company is a leader in the TV movie
and mini-series space, producing for the likes of SCI FI Channel and Spike TV,
among others. It also has a deal for a branded block on ION Television.

—By Mansha Daswani