Lionsgate Secures Amended Terms for Credit Facility

SANTA MONICA/VANCOUVER: Lionsgate has reached a deal with JPMorgan Chase Bank to change the terms of its $340 million credit facility, staving off a potential bankruptcy threat.

Under the terms of the previous arrangement, if a shareholder were to acquire more than 20 percent of the company’s shares, that would trigger a default of the loan facility. Billionaire Carl Icahn last week secured enough shares in a tender offer to raise his stake to 31.8 percent. With the amended agreement, the trigger has been increased to 50 percent. Other key financial terms and provisions remain unchanged.