Transactions will save over $20 million in annual costs
The studio made the announcement Monday in an 8-K filing with the Securities and Exchange Commission.
Lionsgate, the studio behind Jennifer Lawrence’s “The Hunger Games,” made a similar move last year when it paid off the $500 million term loan it used to buy Summit Entertainment two years early — which generated $10 million in annual savings.
Lionsgate announced a pair of transactions in Monday’s filing — a private placement of $225 million of senior secured notes at 5.25% and due in 2018; and another $225 million in term loans.
The company said it used the proceeds, along with cash on hand and borrowings under its revolving credit facility, to pay off its 10.25% senior senior notes due in 2016.
Lionsgate stock has tripled in value since it bought Summit in January, 2012.