As expected, New Line Cinema has filed paperwork with the Securities & Exchange Commission for a proposed public offering of 2 million common shares.
In addition, the company has granted to the underwriters an option to purchase up to an additional 300,000 shares to cover any over-allotments.
Morgan Stanley & Co., Donaldson, Lufkin & Jenrette Securities Corp., Furman Selz Inc. and Kidder, Peabody & Co. will manage the offering.
New Line expects to use the net proceeds from the offering for general corporate purposes, including the financing of its production and acquisition of new film projects. Initially all of the net proceeds will be used to reduce debt under the company’s credit facility.