Lionsgate expands credit facility to $850 million

Published 16/12/2024, 18:58
Lionsgate expands credit facility to $850 million

Lionsgate Studios Corp., listed on the Nasdaq Global Select Market under the ticker LION, is a well-known entity in the motion picture and video tape production industry, with its headquarters located in Santa Monica, California, and additional executive offices in Vancouver, British Columbia. The company generated $230.3 million in EBITDA over the last twelve months, though it remains unprofitable during this period.

Investors and interested parties should note that this news is based on a press release statement and that the financial details are subject to the terms outlined in the SEC filing. Based on InvestingPro's Fair Value analysis, the stock appears overvalued at its current trading price of $7.19.

Lionsgate Studios Corp., listed on the Nasdaq Global Select Market under the ticker LION, is a well-known entity in the motion picture and video tape production industry, with its headquarters located in Santa Monica, California, and additional executive offices in Vancouver, British Columbia. The company generated $230.3 million in EBITDA over the last twelve months, though it remains unprofitable during this period.

Investors and interested parties should note that this news is based on a press release statement and that the financial details are subject to the terms outlined in the SEC filing. Based on InvestingPro's Fair Value analysis, the stock appears overvalued at its current trading price of $7.19.

The facility's expansion took place through a series of amendments, with the most recent one, Amendment No. 1, dated December 9, 2024, pushing the ceiling to the current $850 million. This amendment followed an earlier restatement on November 5, 2024, which had increased the maximum principal amount to $720 million.

Under the terms of the agreement, Lionsgate is obliged to make quarterly principal payments starting February 14, 2025, at 2.5% of the outstanding principal amount, with the remaining balance due at maturity on September 30, 2029. The interest rate applied to the advances under this facility is set at Term SOFR plus 2.25% per annum.

The credit facility is a strategic financial instrument for Lionsgate, allowing the company to leverage its extensive content library. The borrowing base is tied to the valuation of unsold rights from these library titles, indicating a direct link between the company's creative assets and its financial maneuvering.

Lionsgate Studios Corp., listed on the Nasdaq Global Select Market under the ticker LION, is a well-known entity in the motion picture and video tape production industry, with its headquarters located in Santa Monica, California, and additional executive offices in Vancouver, British Columbia.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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