05:38 PDT 23/03/2021
by
Etan Vlessing
The company will use the proceeds of a private placement to repay short-term bonds.
Lionsgate will raise $ 1 billion through a bond sale and says it will use the proceeds to repay outstanding debt.
In an SEC filing Tuesday, the studio said a subsidiary, Lions Gate Capital Holdings LLC, would offer up to $ 1 billion in new senior notes through a private placement.
The subsidiary intends to use the proceeds of the bond sale to repay short-term debt and specifically 6,375 percent senior notes on 2024 and 5,875 percent senior notes payable on 2024.
Lionsgate’s latest debt increase comes because the studio wants to expand Starz’s global reach, and the premium cable channel that is now penetrating the streaming space through the acquisition and production of original content. Starz has seen a huge increase in viewer growth and subscriber growth as people spend more time at home amid the COVID-19 pandemic.