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Recovery Report: Lions Gate Entertainment Corp.'s Recovery Rating Profile May 11 Product Image

Recovery Report: Lions Gate Entertainment Corp.'s Recovery Rating Profile May 11

  • ID: 1786033
  • May 2011
  • Standard & Poors

Abstract
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.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Full Analysis

- Lions Gate Entertainment Corp.
- Lions Gate Entertainment Inc.

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