New York, March 13, 2015 -- Moody's Investors Service said that Lions Gate Entertainment Corp.'s (Lionsgate) Ba3 Corporate Family rating (CFR), Ba3-PD Probability of Default rating and the Ba3 rating on the new 5% fixed rate senior secured second lien term loan are not affected by the announced $125 million increase in the size of its second lien term loan to a total of $375 million. The incremental proceeds will be used to further reduce amounts outstanding under the $800 million first lien senior secured revolver, under which there was $160 million outstanding at 12/31/2014. Even though the upsizing of the second lien term loan will result in a higher percentage of second lien debt in the company's capital structure, the change in debt mix does not impact the individual instrument ratings under Moody's Loss Given Default methodology. Additionally, while the reduction in revolver borrowings will temporarily decrease the amount of first lien debt in the capital structure, we anticipate that Lions Gate will continue to remain reliant on the revolver to meet working capital needs arising from significant upfront payments associated with film and television production.

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