Lionsgate Closes $800 Million Credit Facility
The mini-major was able to use its recent success in movies and TV and the merger with Summit to lower its cost of lending.
Lionsgate has closed its new five-year, $800 million credit facility, which it said in an announcement Thursday is “one of the largest revolving credit facilities raised by an entertainment company in more than a decade.”
The new loan, which has been in the works since at least early July, replaces an existing $340 million credit facility. Lionsgate was able to use the higher price of its stock, its success with movies and TV and the positive impact of the January merger with Summit Entertainment, to lower its cost of lending and increase the amount available to grow the company. Lionsgate said it also would allow it to capitalize on strategic opportunities that might come up.
According to the announcement, JPMorgan Chase Bank served as administrative agent with JP Morgan Securities, Barclays Bank, Merrill Lynch, Pierce, Fenner & Smith and Royal Bank of Canada acting as co-syndication agents, joint bookrunners and joint lead arrangers, Wells Fargo serving as co-syndication agent and SunTrust Bank and Union Bank acting as co-documentation agents.
“The size of the new facility is a testament to the company’s strong relationships with the financing community and the value of its franchises and filmed entertainment library, and it reflects the significant recent expansion of the company’s borrowing base,” said David Shaheen, managing director and head of JPMorgan’s Entertainment Industries Group. “This new facility will be an important resource in helping Lionsgate to continue executing its long-term growth plan.”
The new credit arrangement was overseen by Lionsgate by vice chairman Michael Burns, executive vp corporate development Brian Goldsmith, general counsel and executive vp corporate operations Wayne Levin and CFO Jim Keegan. Lionsgate was represented by the law firms O’Melveny & Myers and Heenan Blaikie.
Lionsgate will release Summit’s The Twilight Saga: Breaking Dawn – Part 2 on Nov. 16 and The Hunger Games: Catching Fire on Nov. 22.