Lions Gate Says Icahn’s Move Could Risk Default
March 27, 2009

From Dealbook - Here’s the latest on what is going on with Icahn. He wants it all, no surprise considering the strength of LG library which include the Madea franchise.

Mr. Icahn, who controls 14.5 percent of Lions Gate shares, has launched an offer to buy $325 million worth of convertible notes issued by the studio, producer of the popular “Saw” and Tyler Perry movies, and the “Mad Men” cable TV series.

If Mr. Icahn were to successfully buy the debt and convert it all into equity, his stake would double to about 28 percent to 29 percent. The offer expires on April 20.

Lions Gate said on Thursday its board decided to adopt a “neutral” stance toward the activist shareholder’s tender offer, but warned that, if Mr. Icahn owned more than 20 percent of the company, it may constitute a change in control that could result in default and accelerated payment obligations on another Lions Gate credit facility.

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