IMAX down after $220 mln convertible bonds sale

IMAX

04/11/2025 17:40

** Shares of cinema operator IMAX IMAX.N down 0.6% to $32.44 amid broader market weakness on Tues after capital raise

    ** Canada-based IMAX early Tues announced pricing
     private offering of $220 mln 0.75% 5-yr convertible bonds (CBs)

    ** Initial conversion price of $42.42 represents 30% premium over stock's last close of $32.63

    ** IMAX stock on Mon finished session up 0.4% after co announced the offering

    ** Co intends to use net offering proceeds and cash to
    repurchase ~$230 mln principal of its 0.5% CBs due 2026 for $276 mln

** It also plans to use ~$19 mln to pay cost of capped calls to mitigate potential dilution; the cap price of $57.10 is 75% above stock's last sale

** Including move on Tues, IMAX stock up 27% YTD

    ** Of 12 analysts covering IMAX, recommendation breakdown is 10 "strong buy" or "buy", 1 "hold" and 1 "sell"; median PT is $39.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))