Moody’s rates Lions Gate facilities, notes

Moody’s Investors Service said it affirmed Lions Gate Entertainment Corp.'s Ba3 corporate family rating and Ba3-PD probability of default rating and assigned a Ba2 rating to Lions Gate Capital Holdings LLC's new senior secured credit facilities.

The facilities consist of a $1.5 billion revolving credit facility due 2023, a $500 million first-lien term loan A due 2023 and a $1.025 billion first-lien term loan B due 2025.

Proceeds from the new term loans and revolver draw will be used to repay the existing $950 million term loan A and $825 million term loan B held at Lionsgate.

Moody's also assigned a B2 rating to the new 5 7/8% new global notes due in 2024 that have been offered in exchange for the existing 5 7/8% global notes due in 2024 issued by LG FinanceCo Corp.

The agency said the SGL-1 speculative grade liquidity rating will change to SGL-2 due to an expectation of moderately less liquidity and bank facility covenant cushion when the company funds its dissenting equity liability claims, which is expected within the next 12 months.

Moody’s said that since the refinancing transaction is leverage-neutral, and there are no material changes in the terms, it will not impact the Ba3 corporate family rating. The outlook remains stable.

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