Standard & Poor's Ratings Services is updating our recovery report on Lions Gate Entertainment Corp. to reflect the issuance of an additional $200 million of second-lien notes on May 9, 2011. We revised our recovery rating on the company's second-lien notes to '4' from '2', indicating our expectation of 30%-50% recovery in the event of a payment default. Our simulated default scenario contemplates a default in 2013 as a result of high debt-service requirements and limited commercial success of the company's motion pictures. Our simulated default assumes that the company liquidates, and we employed a net asset value approach to value the company. On May 9, 2011, Lions Gate launched an issuance of $200 million of additional notes under its...
Companies mentioned in this report are:
- Lions Gate Entertainment Corp.
- Lions Gate Entertainment Inc.
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