IMAX slips after $220 mln convertible bonds offering announced

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