Spelling Productions Plans $108-Million Stock Offering
Aaron Spelling Productions, the producer of such television hits as “Dynasty” and “Love Boat,” said Tuesday that it will become a publicly owned company by selling $108 million in common stock.
If the initial offering by the 21-year-old company is cleared by the Securities and Exchange Commission, about two-thirds of the company’s voting stock would remain in the hands of Aaron Spelling, its 63-year-old founder.
According to the registration statement, the production firm proposes to sell about 72% of its Class A common stock to the public for prices between $14 and $17 per share.
Class B common stock would be wholly owned by Aaron Spelling, the company’s chief executive. As a result, the executive would control up to 68.7% of the voting shares.
Noting that it has produced shows recently with Douglas S. Cramer and E. Duke Vincent, Spelling Productions said it plans to acquire their current interests for cash and common stock after its own stock offering is completed. Cramer is expected to become the company’s executive vice president and a director, while Vincent will become senior vice president and a director.
Spelling has agreed to sign a contract to serve as chairman and chief executive, with an annual base salary of $600,000 for the first year. According to the registration, Spelling received cash compensation of $15.7 million in 1985.
The Los Angeles-based company currently has four TV series in production, all airing on the ABC television network: “Dynasty,” “Hotel,” “The Colbys” and “Life With Lucy,” a new show featuring actress Lucille Ball. Four series are currently in domestic syndication.
ABC has exclusive rights to any prime-time programming produced by Spelling Productions until March 31, 1988. But the registration statement discloses that the agreement “has never been reduced to a signed written contract,” so the “exact rights and obligations of the parties cannot be determined with certainty.”
In addition to the common stock offering, Spelling Productions said it is offering $25 million in subordinated notes due 1993.