Lions Gate Entertainment driving by with $1 billion eight-year notes; initial guidance 6% area

By Paul A. Harris

Portland, Ore., March 23 – Lions Gate Entertainment Corp. plans to price a $1 billion offering of eight-year senior notes (existing ratings B3/CCC+) in a Tuesday drive-by, according to market sources.

Initial guidance has the notes coming to yield in the 6% area, a trader said.

J.P. Morgan Securities LLC is managing the sale.

The notes, which are being offered exclusively to qualified institutional investors, come with two years of call protection.

The media company, which is incorporated in Canada, plans to issue via its wholly owned subsidiary Lions Gate Capital Holdings LLC (LGCH).

Proceeds plus cash on hand will be used to redeem LGCH’s 6 3/8% senior notes due 2024 and 5 7/8% senior notes due 2024.

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