Lionsgate Studios increases credit facility to $1.25 billion with new amendment

Published 01/10/2025, 21:40
Lionsgate Studios increases credit facility to $1.25 billion with new amendment

Lionsgate Studios Corp. (NYSE:LION) has amended its existing senior secured term credit facility, raising the maximum principal amount to $1.25 billion. The amendment, executed Friday, marks the fourth increase to the facility since its original agreement in September 2024, according to a statement in a press release based on a recent SEC filing. According to InvestingPro data, the company currently carries a total debt burden of $4.11 billion, with short-term obligations exceeding liquid assets.

The credit facility is secured by intellectual property rights primarily associated with certain library titles. The facility was originally established at $455 million and has been expanded through a series of amendments: to $720 million in November 2024, $850 million in December 2024, $1 billion in March 2025, and now to $1.25 billion as of September 26, 2025. With a current ratio of 0.45, InvestingPro analysis reveals the company’s liquidity challenges, which may explain these continued facility expansions. Get access to 5 more key ProTips and comprehensive financial analysis with InvestingPro.

Under the terms of the agreement, the facility requires quarterly principal payments of 2.5% of the outstanding balance, starting February 14, 2025. The remaining balance is due at maturity on September 30, 2029. Borrowings under the facility bear interest at a rate equal to Term SOFR plus 2.25% per annum.

The credit agreement involves several lenders and financial institutions, including Fifth Third Bank as administrative agent and joint lead arranger, East West Bank as reserve deposit agent, and multiple other banks as co-documentation agents and co-managers.

The company noted that the facility’s size is subject to the valuation of unsold rights from its library titles, which serve as collateral.

This information is based on a press release statement and details included in Lionsgate Studios Corp.’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Lionsgate Studios Holding Corp reported its Q1 FY2026 earnings, showing a revenue of $556 million and an operating loss of $10.6 million. Despite the operating loss, the company is focusing on strategic expansions and new content projects. These initiatives have helped maintain stable investor sentiment. Additionally, Baird has initiated coverage on Lionsgate Studios with an Outperform rating, citing the company’s strong intellectual property portfolio and its risk-mitigated market approach. Baird set a price target of $8.00 for the stock. These developments come as Lionsgate continues to operate as a standalone, pure-play content business.

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.