A subsidiary of the studio, Lions Gate Capital Holdings, will offer up to $1 billion in senior notes via private placement
Lionsgate will raise $1 billion via a bond sale as a means of using proceeds to repay debt, according to the company’s SEC filing on Tuesday.
A subsidiary company of the Santa Monica-based studio, Lions Gate Capital Holdings LLC, will offer up to $1 billion in senior notes via a private placement.
The proceeds from that bond sale, together with other cash on hand, will go to redeem 6.375% of senior notes due 2024 and 5.875% of senior notes due 2024, as well as to pay fees and expenses related to the offering of the notes.
This latest debt raise from Lionsgate comes as the studio is hoping to grow the global reach of Starz and after the studio restructured its film group back in December.
As part of its Q3 forecast, Lionsgate beat Wall Street estimates in its quarter ending Dec. 31, 2020, reporting revenue of $836.4 million.
Last month, the company also reported a loss of 6 cents per share and an announced net loss attributable to Lionsgate shareholders of $13.9 million and an adjusted net income attributable to Lionsgate shareholders of $45.9 million.
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