Lions Gate Entertainment Corporation (LGF), the movie production and distribution company, recently declared that its wholly owned subsidiary Lions Gate Entertainment Inc. entered into an agreement to sell $236 million of senior notes that will be repaid in 2016.
The senior notes will mature on November 1, 2016, and carry a coupon rate of 10.25%. The interest would be paid twice a year on May 1 and November 1 of every year.
The notes will be issued at an initial price of 95.222% of the aggregate principal amount, and the net proceeds — after subtracting discounts and other fees and expenses from the sale of the notes — will be utilized to repay outstanding debt under its revolving credit facility. The company generally utilizes the facility to meet its general business purposes.
Lions Gate produces and distributes motion pictures for theatrical and straight-to-video release, and television programming for both cable and broadcast networks. Lions Gate’s crown jewel is its film library of roughly 8,000 film titles and 4,000 T.V. episodes, which it distributes directly to retailers, video rental stores, and pay and free T.V. channels in the U.S., Canada, the U.K. and Australia, and indirectly to other international markets through its subsidiaries and third parties.
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