4//SEC Filing
Discovery Lightning Investments LTD 4
Accession 0001209191-19-047637
CIK 0000929351other
Filed
Aug 27, 8:00 PM ET
Accepted
Aug 28, 6:19 PM ET
Size
21.0 KB
Accession
0001209191-19-047637
Insider Transaction Report
Form 4
Transactions
- Exercise of In-MoneySwap
Class A Voting Shares
2019-08-28−16,667→ 2,483,333 total(indirect: By subsidiary) - Exercise of In-MoneySwap
Class B Non-Voting Shares
2019-08-28−16,667→ 2,483,333 total(indirect: By subsidiary) - Exercise of In-MoneySwap
Class B Non-Voting Shares
2019-08-28+16,667→ 2,500,000 total(indirect: By subsidiary) - Exercise of In-MoneySwap
Class A Voting Shares
2019-08-28+16,667→ 2,500,000 total(indirect: By subsidiary) - Exercise of In-MoneySwap
Put option (right to sell)
2019-08-28+33,334→ 1,666,650 total(indirect: By subsidiary)Exercise: $33.17From: 2019-08-28Exp: 2019-08-28→ Units of Class A Voting Shares and Class B Non-Voting Shares (33,334 underlying)
Transactions
- Exercise of In-MoneySwap
Class B Non-Voting Shares
2019-08-28−16,667→ 2,483,333 total(indirect: By subsidiary) - Exercise of In-MoneySwap
Class A Voting Shares
2019-08-28−16,667→ 2,483,333 total(indirect: By subsidiary) - Exercise of In-MoneySwap
Class B Non-Voting Shares
2019-08-28+16,667→ 2,500,000 total(indirect: By subsidiary) - Exercise of In-MoneySwap
Put option (right to sell)
2019-08-28+33,334→ 1,666,650 total(indirect: By subsidiary)Exercise: $33.17From: 2019-08-28Exp: 2019-08-28→ Units of Class A Voting Shares and Class B Non-Voting Shares (33,334 underlying) - Exercise of In-MoneySwap
Class A Voting Shares
2019-08-28+16,667→ 2,500,000 total(indirect: By subsidiary)
Footnotes (8)
- [F1]On August 28, 2019, the twenty-fifth Component of Tranche I of the Transaction (as defined and described below) expired. The Component was cash settled at a Settlement Price (as defined and described in note 6 below) of $9.600, which was below the Put Strike Price. As a result, the Reporting Person received $23.567 for each unit (as described in note 3 below) in cash from the Bank pursuant to the terms of the Transaction.
- [F2]The shares are held directly by Discovery Lightning Investments Limited, an indirect wholly-owned subsidiary of Discovery, Inc.
- [F3]The Transaction is divided into three individual tranches (each a "Tranche") with each Tranche divided into 25 individual components (each a "Component"); the expiration dates of the options included in the Components constituting Tranche 1 are the 25 trading days from July 25, 2019 through August 28, 2019, inclusive; the expiration dates of the options included in the Components constituting Tranche 2 are the 25 trading days from October 23, 2020 through November 30, 2020, inclusive; and the expiration dates of the Components constituting Tranche 3 are the 25 trading days from January 25, 2022 through March 1, 2022, inclusive.
- [F4]On the relevant expiration date for each Component: the call option will automatically be exercised if the Settlement Price is greater than $52.677 (the "Call Strike Price"); the put option will automatically be exercised if the reference price is less than or equal to $33.167 (the "Put Strike Price"); and the call right and the put right will expire unexercised if the reference price is greater than the Put Strike Price but less than the Call Strike Price.
- [F5]The "Settlement Price" means the sum of (i) the volume weighted average trading price of a Class A Voting Share multiplied by 0.5 and (ii) the volume weighted average trading price of a Class B Non-Voting Share multiplied by 0.5, in each case on the expiration date for the relevant Component. The options will be settled in cash unless Discovery elects physical settlement.
- [F6]As reported on a previously filed Form 4, on November 12, 2015, Discovery Lightning Investments Limited ("Discovery"), a wholly-owned subsidiary of Discovery, Inc., entered into a Collar Transaction (the "Transaction") with an unaffiliated bank (the "Bank"), pursuant to which Discovery wrote covered call options and purchased put options over an aggregate of 2,500,000 Common Shares. In connection with a reclassification of the Issuer's common shares, pursuant to a notice dated February 10, 2017 given by the Bank, the terms of the Transaction were adjusted in a transaction exempt under Rule 16b-7 to reflect the reclassification, with no changes to the economic rights and obligations of either Discovery or the Bank. As adjusted, the Transaction relates to 2,500,000 units, each consisting of 0.5 Class A Voting Shares and 0.5 Class B Non-Voting Shares, for an aggregate of 1,250,000 Class A Voting Shares and 1,250,000 Class B Non-Voting Shares.
- [F7]Each Component relates to 16,667 Class A Voting Shares and 16,667 Class B Non-Voting Shares (or, in the case of the options included in the Components having the final expiration date for each Tranche, 16,658.5 Class A Voting Shares and 16,658.5 Class B Non-Voting Shares) in the case of Tranche 1 and Tranche 2 and 16,659 Class A Voting Shares and 16,659 Class B Non-Voting Shares in the case of Tranche 3).
- [F8]As reported on a previously filed Form 4, in exchange for the Bank's entering into the Transaction, Discovery paid the Bank a premium of $3,599,595 and pledged 1,250,000 Class A Voting Shares and 1,250,000 Class B Non-Voting Shares of the Issuer to the Bank to secure its obligations under the Transaction. In connection with each settlement of the put options described above, the number of pledged shares was reduced by 16,667 Class A Voting Shares and 16,667 Class B Non-Voting Shares. In most circumstances, Discovery retains voting rights in the pledged shares during the term of the pledge, but Discovery is obligated to share with the Bank the economic benefit of any dividends paid during the term of the pledge based on a formula that takes into account a theoretical hedging position by the Bank.
Documents
Issuer
LIONS GATE ENTERTAINMENT CORP /CN/
CIK 0000929351
Entity typeother
IncorporatedUnited Kingdom
Related Parties
1- filerCIK 0001658101
Filing Metadata
- Form type
- 4
- Filed
- Aug 27, 8:00 PM ET
- Accepted
- Aug 28, 6:19 PM ET
- Size
- 21.0 KB