Loews Chain Files for Stock Offering
Loews Cineplex Entertainment Corp., the theater chain that emerged from bankruptcy protection less than five months ago, filed Tuesday for a $300-million initial public offering, with some stock to be sold by shareholder Oaktree Capital Management.
Loews and an affiliate of Oaktree, a Los Angeles-based firm that invests in distressed companies, will sell an unspecified number of Class A common shares in the IPO, according to a Securities and Exchange Commission filing.
The Oaktree affiliate acquired 40% of New York-based Loews in the theater chain’s bankruptcy reorganization. Onex Corp., a Toronto investment company, acquired a 60% stake.
Loews plans to use an unspecified portion of the IPO proceeds to repay debt and fund general needs, including expansion moves such as building or buying theaters, according to the filing. The company owns, manages or has an interest in 282 Loews, Cineplex Odeon and other theaters.
The filing did not say how many shares will be offered or their price. Loews plans to list the shares on the New York Stock Exchange.
Insiders Required to
File Stock Deals Faster
The Securities and Exchange Commission, carrying out a provision of a new U.S. accounting law, said it plans to require corporate insiders to begin faster filing of their company stock transactions on Aug. 29.
Corporate insiders will have to report changes in company stock ownership within two business days of the purchase or sale. Until now, company officers, directors and principal shareholders didn’t have to report purchases or sales until 10 days after the end of the calendar month, which meant a reporting gap of as many as 40 days.
The new deadlines aim to give investors a better idea of insiders’ activities and restore confidence in business.