5h38 PDT 03/23/2021
in
Etan Vlessing
The company will use the proceeds of a private placement to pay short-term bonds.
Lionsgate is expected to raise $ 1 billion through a bond sale, saying it will use the proceeds to pay outstanding debts.
In a filing by the SEC on Tuesday, the studio said a subsidiary, Lions Gate Capital Holdings LLC, will offer up to $ 1 billion in new senior notes through a private placement.
The subsidiary intends to use the proceeds from the sale of securities to redeem short-term debt and, specifically, 6.375% of senior notes due in 2024 and 5.875% of senior notes due in 2024.
Lionsgate’s latest increase in debt comes as the studio seeks to increase the worldwide reach of Starz, its premium cable channel now entering the streaming space through the acquisition and production of original content. Starz saw a huge increase in streaming audience and subscriber growth, as people spent more time at home in the midst of the COVID-19 pandemic.