Co. to offer Cineplex Galaxy Income Fund units
HOLLYWOOD — Onex, a diversified conglom based in Toronto, has confirmed in a regulatory filing its intent to spin off its Canadian exhibition assets into an income trust.
Move involves a variation on a conventional initial public offering. Instead of offering shares in the company itself as with a traditional IPO, units in the Cineplex Galaxy Income Fund will be offered.
No U.S. offering
The units will not be traded in the U.S., an Onex spokesman said.
Proceeds from the income offering will be invested in Cineplex Galaxy Limited Partnership, and the partnership will acquire assets of Onex’s two Canadian circuits — Cineplex Odeon and Galaxy Entertainment. Once the transactions are completed, the partnership will operate 81 theaters with 731 screens.
Underwriting syndicate for the offering will be co-led by RBC Capital Markets and Scotia Capital. Onex detailed its plans for the income trust in a preliminary prospectus circulated Friday.