New Issue: Lions Gate sells upsized $236 million 10¼% seven-year notes at 95.222 to yield 11¼%

By Paul A. Harris

St. Louis, Oct. 16 - Lions Gate Entertainment, Inc. priced an upsized $236 million issue of 10¼% seven-year notes (B1/B/) at 95.222 to yield 11¼% on Thursday, according to an informed source.

The yield printed at the wide end of the 11% to 11¼% yield talk, while the issue price came toward the cheap end of the 3 to 5 points of discount talk.

J.P. Morgan Securities Inc. ran the books for the deal, which was upsized from $200 million. Wells Fargo Securities was a joint lead manager.

Proceeds will be used to repay revolving credit facility debt.

The issuer is a Vancouver, B.C., developer, producer and distributor of filmed entertainment content.

Issuer:	Lions Gate Entertainment, Inc.
Face amount:	$236 million, increased from $200 million
Proceeds:	$224.724 million (approximate)
Maturity:	Nov. 1, 2016
Security description:	Senior secured second-priority notes
Bookrunner:	J.P. Morgan Securities Inc.
Lead manager:	Wells Fargo Securities
Co-managers:	Mitsubishi, Piper Jaffray & Co., Thomas Weisel
Coupon:	10¼%
Price:	95.222
Yield:	11¼%
Spread:	826 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 1, 2013, then callable at 105.125, 102.563, par on and after Nov. 1, 2015
Equity clawback:	35% at 110.25% until Nov. 1, 2012
Change-of-control put:	101%
Trade date:	Oct. 15
Settlement date:	Oct. 22
Ratings:	Moody's: B1
	Standard & Poor's: B
Distribution:	Rule 144A for life
Price talk:	11% to 11¼% with 3 to 5 points OID

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