Lionsgate Ups Credit29 Jul, 2008 By: Erik Gruenwedel
The world credit market may be tougher to crack than Fort Knox, but that didn't stop Lionsgate from obtaining a new five-year $340 million revolving credit facility with JPMorgan. It replaces a $215 million line of credit also with JPMorgan.
The Santa Monica, Calif.-based mini-major plans to use the funds, which can be increased to $500 million, for strategic opportunities that “may arise.”
A spokesperson from JPMorgan said Lionsgate's business model elicited a number of competing credit offers from financial institutions.
“The facility was actually oversubscribed as participating banks saw Lionsgate's unique vision for monetizing their content leadership,” said Christa Thomas, managing director of JPMorgan.
Lionsgate in the past three years used $150 million of its available credit to acquire Redbus Film Distributors (now Lionsgate U.K.), production company Mandate Pictures, a 43% stake in Roadside Attractions, a 42% stake in Break.com and launch horror cable channel, FearNet.