IMAX closed a private offering of $250 million in 0.75% convertible senior notes due 2030 on November 6, 2025. The notes carry a 0.75% coupon and a capped call price of $57.1025, a 75 % premium over the last sale price on November 3, 2025, reflecting strong investor demand for the company’s low‑cost, upside‑potential debt instrument.
The net proceeds were used to repurchase approximately $229.7 million of IMAX’s outstanding 0.500% convertible senior notes due 2026, in addition to cash on hand and borrowings under the company’s credit facility. The repurchase reduces the company’s interest expense and shortens its debt maturity profile, improving leverage and freeing capital for future growth initiatives.
Strategically, the new notes offer a lower coupon than the 2026 notes while providing a conversion feature that can be exercised if the company’s equity rises. By refinancing at a lower rate and simultaneously retiring higher‑cost debt, IMAX strengthens its balance sheet and preserves flexibility to invest in system upgrades, content development, and technology platform enhancements.
The transaction follows a prior $220 million convertible issuance earlier in November, underscoring IMAX’s ability to secure attractive financing terms. As of September 30, 2025, the company operated 1,829 systems in 89 countries. In Q3 2025, IMAX reported revenue of $106.7 million, up 16.6 % year‑over‑year, and an adjusted EPS of $0.47, a 34.3 % increase, driven by robust demand for premium cinema experiences and content distribution. The prior quarter’s performance—adjusted EPS of $0.27 in Q4 2024, up 59 % YoY—illustrates a consistent upward trajectory in earnings and operating cash flow.
CEO Rich Gelfond said the transaction “strengthens the balance sheet and provides greater flexibility to invest in growth across our global network, content portfolio, and technology platform.” He added that IMAX is “on track for the best year in history,” highlighting confidence in the company’s long‑term growth prospects and the effectiveness of its capital‑structure strategy.
Market reaction to the offering was positive, with institutional investors welcoming the low coupon and conversion feature. Analysts noted that the favorable terms and the repurchase of older debt signal strong credit standing and a proactive approach to debt management, reinforcing confidence in IMAX’s financial health and growth trajectory.
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