IMAX slips after $220 mln convertible bonds offering announced

IMAX

03/11/2025 12:52

** Shares of cinema operator IMAX IMAX.N down 1.6% before the bell to $31.96 as it seeks capital raise

    ** Canada-based IMAX announces private offering of $220 mln 5-yr convertible bonds (CBs)

** Co plans to use net offering proceeds to repurchase its 2026 notes, any remainder for working capital, share repurchases or other purposes, including potential repurchase or retirement of 0.5% CBs due 2026

** It also intends to use portion of proceeds to pay cost of capped calls, derivative transactions employed to help offset possible dilution

** IMAX has ~$1.7 bln market cap

** Stock on Fri edged up 0.2% to $32.49, 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))