SEC Filing Summary: Lions Gate Entertainment Corp.
Business Context and Reporting Period
This Form 8-K Current Report was filed on November 24, 2009, by Lions Gate Entertainment Corp. (the "Company"). The filing discloses a material definitive agreement entered into on the same date involving the Company's wholly-owned subsidiaries: Lions Gate Entertainment Inc., Lions Gate UK Limited, and Lions Gate Australia Pty Limited.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, or cash flow data. Specific financial details disclosed include:
- Transaction Fees: Approximately $0.3 million paid to lenders in connection with the agreement.
- Credit Facility: A $340 million secured revolving credit facility remains in place, expiring on July 25, 2013.
- Subsidiary Utilization: Up to $20 million of the facility may be utilized by Lions Gate UK Limited, and up to $10 million by Lions Gate Australia Pty Limited.
Material Changes
The primary material change is the execution of Amendment No. 2 to the Second Amended and Restated Credit, Security, Guaranty and Pledge Agreement dated July 25, 2008. This amendment modifies the existing credit terms to:
- Permit the use of cash held as collateral for the "PA Loan" to acquire Convertible Senior Subordinated Notes.
- Add a specific party to the list of Acceptable Domestic Account Debtors.
Outlook, Risks, and Management Commentary
Management commentary is limited to the description of the amendment's purpose. The filing notes that confidential treatment has been requested for portions of the amendment exhibit, meaning specific terms regarding the PA Loan and the new debtor are not fully disclosed in this public text. No forward-looking guidance or new risk factors were introduced in this specific filing.
Investor Verification Checklist
- Verify the specific terms of the "PA Loan" and the Convertible Senior Subordinated Notes referenced in the amendment.
- Confirm the identity of the new party added to the Acceptable Domestic Account Debtors list.
- Review the full text of Amendment No. 2 (Exhibit 10.71) once confidential portions are resolved or if redacted details become public.
- Monitor the Company's liquidity position given the utilization of cash collateral for debt acquisition.