Lionsgate Studios expands credit facility to $1 billion

Published 04/04/2025, 11:08
Lionsgate Studios expands credit facility to $1 billion

Lionsgate Studios Corp. (NASDAQ:LION), a prominent player in the motion picture and video tape production industry with a market capitalization of $2.05 billion, has amended its existing credit agreement, further expanding its borrowing capacity to $1 billion, according to a recent SEC filing. This move comes amid a notification from Nasdaq regarding non-compliance with annual meeting requirements and follows a challenging period where the stock has declined 33.36% over the past year. According to InvestingPro analysis, the company currently operates with a significant debt burden, with total debt reaching $3.86 billion.

On Monday, Lionsgate Studios disclosed the execution of Amendment 2 to its Amended and Restated Credit, Security and Pledge Agreement, initially established on September 30, 2024. The amendment increases the maximum principal amount of the LG IP Credit Facility from $850 million to $1 billion. The facility is secured by intellectual property rights associated with certain library titles and is set to mature on September 30, 2029.

The credit facility, originally capped at $455 million, has been subject to several increases, with the most recent prior amendment in December 2024. The facility’s terms require quarterly principal payments beginning February 14, 2025, and carry an interest at Term SOFR plus 2.25% per annum. InvestingPro data reveals that the company’s current ratio stands at 0.36, indicating that short-term obligations exceed liquid assets, which may explain the need for expanded credit facilities. The company generated $244.3 million in EBITDA over the last twelve months.

In a separate but related disclosure, Lionsgate Studios received a notice from Nasdaq on April 1, 2025, indicating that the company had not adhered to listing rules requiring an annual shareholder meeting within twelve months of fiscal year-end. The company has been given until May 16, 2025, to present a plan to regain compliance. If the plan is accepted, Nasdaq may allow an extension until September 29, 2025, for the company to meet the listing standards.

The filing also mentioned that Lionsgate’s common shares would be delisted from Nasdaq in connection with the proposed separation of the Studios and Starz Businesses of Lions Gate Entertainment Corp (NYSE:LGFa). However, if the transactions are not approved, the company plans to hold an annual meeting to regain compliance.

The information provided is based on the company’s 8-K filing with the Securities and Exchange Commission. The SEC filing details the company’s financial arrangements and regulatory compliance status but does not imply any judgment on the company’s financial health or market position. For a comprehensive analysis of Lionsgate Studios’ financial health and future prospects, InvestingPro subscribers can access detailed research reports, including 10+ additional ProTips and extensive financial metrics that provide deeper insights into the company’s valuation and growth potential.

In other recent news, Lionsgate Studios Corp reported impressive financial results for Q4 2024, with adjusted earnings per share (EPS) of $0.28, significantly surpassing the forecasted $0.07. The company’s revenue also exceeded expectations, reaching $970.5 million against the anticipated $753 million. Lionsgate is preparing for a strategic separation expected in April, which involves the separation of Lionsgate Studios and Starz. The company has secured a new Amazon (NASDAQ:AMZN) Prime video output deal, which is expected to contribute positively to future financial performance. Analyst firms have yet to update their ratings following these developments, but the strong earnings report may influence future assessments. Lionsgate is also engaged in new content partnerships and productions, including a deal with Amazon Prime Video that extends through 2028. Furthermore, the company continues to focus on its motion picture and television businesses, highlighting strong intellectual property and hit series as key competitive advantages.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.