TIDMETO
RNS Number : 3794C
Entertainment One Ltd
14 June 2019
Date: 14 June 2019
On behalf of: Entertainment One Ltd. (the "Company")
Embargoed until: Immediate Release
Entertainment One Ltd.
Pricing of Senior Secured Notes Offering at 4.625%
Entertainment One Ltd. is pleased to announce the pricing of its
offering of GBP425 million in aggregate principal amount of 4.625%
Senior Secured Notes (the "Notes") due 2026.
The proceeds of the offering will be used to redeem the
Company's GBP355 million in aggregate principal amount of 6.875%
Senior Secured Notes due 2022 (the "Existing Notes"), repay its
outstanding term loan (GBP52 million, in relation to the recent
acquisition of Audio Network) and pay fees and expenses in
connection with the transaction.
The leverage neutral refinancing significantly reduces the
Company's interest costs and extends the overall duration of its
debt facilities:
-- Reduction from 6.875% to 4.625% in the coupon on the Notes,
substantially reducing the Company's average cost of debt and
saving approximately GBP8 million of interest per annum on the
Company's Existing Notes
-- Extension of the maturity of the Company's debt facilities to 2026
In addition to the interest savings above, the recent
refinancing of the Company's revolving credit facility (as
referenced in Note 23 of the financial statements for the year
ended 31 March 2019, announced on 21 May 2019) delivers headline
savings of approximately 100bps versus the previous revolving
credit facility.
The Notes are expected to be issued on 25 June 2019, subject to
standard closing conditions.
The Company also announces that it has issued a notice of
redemption, conditional on completion of the financing, for all of
its outstanding Existing Notes, such redemption to occur on 26 June
2019 at a redemption price equal to 103.438% of the aggregate
principal amount thereof.
Darren Throop, Chief Executive Officer, commented:
"The material reduction in interest cost reflects the Company's
strong growth since the Existing Notes were issued in 2015 and is
testament to our future-facing strategy, the breadth of our
portfolio, our platform-agnostic approach and the strength of our
position in the market."
Enquiries:
Alma PR Rebecca Sanders-Hewett +44 (0)20 3865 9667
Joe Sparacio
Entertainment One Ltd. Patrick Yau +44 (0)20 3714 7931
This release shall not constitute an offer to sell or a
solicitation of an offer to purchase any securities in the United
States, and shall not constitute an offer, solicitation or sale in
any state or jurisdiction in which such an offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any state or country. The Notes and related
guarantees have not been, and will not be, registered under the US
Securities Act of 1933, as amended (the "Securities Act").The Notes
and related guarantees may not be offered or sold in the US absent
registration or an applicable exemption from the registration
requirements of the Securities Act. There will be no public offer
of the Notes or related guarantees in the US.
The Notes are not intended to be offered, sold or otherwise made
available to and should not be offered, sold or otherwise made
available to any retail investor in the European Economic Area
("EEA"). For these purposes, a retail investor means a person who
is one (or more) of: (i) a retail client as defined in point (11)
of Article 4(1) of Directive 2014/65/EU (as amended, "MiFID II"),
(ii) a customer within the meaning of Directive 2016/97/EU (as
amended), where that customer would not qualify as a professional
client as defined in point (10) of Article 4(1) of MiFID II, or
(iii) not a qualified investor as defined in the Prospectus
Directive. Consequently no key information document required by
Regulation (EU) No 1286/2014 (as amended, the "PRIIPs Regulation")
for offering or selling the Notes or otherwise making them
available to retail investors in the EEA has been prepared and
therefore offering or selling the Notes or otherwise making them
available to any retail investor in the EEA may be unlawful under
the PRIIPS Regulation.
MiFID II professionals/ECPs-only / No PRIIPs KID - Manufacturer
target market (MIFID II product governance) is eligible
counterparties and professional clients only (all distribution
channels). No PRIIPs key information document (KID) has been
prepared as not available to retail in EEA.
In the United Kingdom, this communication is for distribution
only to persons who (i) have professional experience in matters
relating to investments falling within Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005, as amended (the "Financial Promotion Order"), (ii) are
persons falling within Article 49(2)(a) to (d) ("high net worth
companies, unincorporated associations etc.") of the Financial
Promotion Order, (iii) are outside the United Kingdom, or (iv) are
persons to whom an invitation or inducement to engage in investment
activity (within the meaning of section 21 of the FSMA) in
connection with the issue or sale of any securities may otherwise
lawfully be communicated or caused to be communicated (all such
persons together being referred to as "relevant persons"). This
communication is directed only at relevant persons and must not be
acted on or relied on by persons who are not relevant persons. Any
investment or investment activity to which this communication
relates is available only to relevant persons and will be engaged
in only with relevant persons.
This release may include projections and other "forward-looking"
statements within the meaning of applicable securities laws. Any
such projections or statements reflect the current views of the
company about further events and financial performance. No
assurances can be given that such events or performance will occur
as projected and actual results may differ materially from these
projections.
Notes to Editors:
About Entertainment One
Entertainment One Ltd. (LSE:ETO) is a global independent studio
that specialises in the development, acquisition, production,
financing, distribution and sales of entertainment content. The
Company's diversified expertise spans across film, television and
music production and sales, family programming, merchandising and
licensing, and digital content. Through its global reach and
expansive scale, powered by deep local market knowledge, the
Company delivers the best content to the world.
Entertainment One's robust network includes international
feature film distribution company Sierra/Affinity; Amblin Partners
with DreamWorks Studios, Participant Media, and Reliance
Entertainment; Makeready with Brad Weston; unscripted television
production companies Whizz Kid Entertainment and Renegade 83; live
entertainment leaders Round Room Entertainment; world-class music
labels Dualtone Music Group and Last Gang; and award-winning
emerging content and technology studio Secret Location.
www.entertainmentone.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCGGUQPQUPBGAC
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