DreamWorks Animation Reveals Details of IPO

Martin Bolton 12/10/04

Underwriters for DreamWorks Animation SKG Inc., producer of the blockbuster “Shrek” movies, Tuesday set the terms of the company’s pending initial public offering at 29 million common shares, with an estimated price range of $23 to $25 a share.

DreamWorks animation is a spin off of the parent DreamWorks LLC, the studio of Jeffrey Katzenberg, David Geffen and Steven Spielberg, and is based in Glendale CA.

DreamWorks plans to grant fully vested stock to some of its and DreamWorks Studios’ employees and advisers upon the completion of the offering, and expects to record a charge of about $19 million to its statement of operations immediately upon the grant of these awards, the filing said.

The company said it plans to retain about $175 million of the net proceeds of $650 million from the IPO for general corporate purposes, including working capital, and will use the remaining net proceeds to repay all or a portion of the debt that it intends to assume from DreamWorks Studios in connection with its separation.

It is planned for the company to be listed on the New York stock exchange under the symbol DWA.

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