Lionsgate Studios Corp., known for The Hunger Games, is exploring bonds backed by its film library and is in early talks with investors, according to Bloomberg Markets. Japanese lender Mitsubishi UFJ Financial Group Inc. is facilitating discussions with money managers, though no offering is confirmed. The studio faces investor pressure, with shares down over 25% since June and activist investor Anson Funds Management pushing for a sale.
Legendary Entertainment has reportedly made a takeover offer, while Anson's Sagar Gupta suggested Netflix Inc. could also show interest. Lionsgate's potential securitization remains unclear, with no terms disclosed. Bond issuances backed by movie and TV content are rare; the last major sale was Village Roadshow's $421.5 million offering in 2020.
Lionsgate's library includes over 20,000 titles like John Wick, generating roughly $1 billion annually. The studio separated from Starz Entertainment in May 2023 and carries over $1.9 billion in debt, including a $1+ billion IP-linked loan maturing in 2030. Analyst Geetha Ranganathan noted library-backed bonds could reduce funding costs but limit flexibility in M&A scenarios.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing