SEC Filing Summary: Lions Gate Entertainment Corp.
Business Context and Reporting Period
This Form 8-K was filed on April 27, 2011, by Lions Gate Entertainment Corp. (Note: The request metadata referenced "STARZ ENTERTAINMENT CORP," but the filing text explicitly identifies the registrant as Lions Gate Entertainment Corp.). The report serves as a Regulation FD disclosure regarding investor meetings and provides specific data on the company's debt covenants as of December 31, 2010.
Key Financial Metrics
The filing discloses specific metrics related to the "borrowing base" under the 10.25% Senior Secured Second-Priority Notes due 2016 (Second-Lien Notes) issued by a wholly-owned subsidiary:
- Borrowing Base (as of Dec 31, 2010): $887.6 million.
- Gross Borrowing Base (as of Dec 31, 2010): $1,246.9 million.
The filing text does not provide clear values for revenue, profit, cash flow, operating margins, total debt, or general liquidity positions outside of the specific borrowing base definitions.
Material Changes
The filing does not report material changes in financial performance compared to prior periods. It solely updates the market on the calculated borrowing base figures used for covenant compliance under the Second-Lien Notes indenture.
Guidance, Outlook, and Risks
Management Commentary: The company clarified the distinction between the "borrowing base" and "gross borrowing base." The borrowing base includes receivables from major media companies and unsold library rights, adjusted by collateral class percentages (ranging from 50% to 100% for receivables and 50% for unsold rights). The gross borrowing base assumes 100% inclusion of all receivables and unsold rights.
Risks and Contingencies: The filing notes that the borrowing base is a critical measurement for determining compliance with covenants under the Second-Lien Notes indenture. No other specific risks or contingencies were detailed in this report.
Investor Verification Checklist
- Verify the distinction between the reported "borrowing base" ($887.6 million) and "gross borrowing base" ($1,246.9 million) to understand covenant headroom.
- Confirm the collateral class percentages applied to receivables and unsold rights in the most recent independent valuation.
- Review the full indenture for the 10.25% Senior Secured Second-Priority Notes due 2016 to understand the specific covenant thresholds tied to the borrowing base.
- Check subsequent filings for updates to the borrowing base, as this data is specific to the December 31, 2010, period.