Carl Icahn surprised almost everybody when he completed his $7 per share tender offer deadline with control of 32% of Lionsgate, shares. Hollywood immediately feared the indie studio would be unable to continue business as usual, because Lionsgate’s $340 million credit facility with JP Morgan Chase Bank contained a covenant that allowed the lender could revoke the credit line once an outsider accrued more than 20% of shares in a takeover bid. Today, Lionsgate announced that it has amended its revolving credit facility with JP Morgan Chase. The trigger threshold for Change of Control has been upped from 20% to 50% control or ownership of the Company’s equity securities. This gives Lionsgate brass the ability to spending money while the Icahn Group takeover attempt plays out. The company notes that it keeps the same interest rate it had before, which is 2.5% above the standard bank borrowing rate (which is currently around 1.175%).
Lionsgate Reworks Terms With JP Morgan To Keep Cash Flowing (As Long As Studio, And Not Icahn, Controls 50% Of Shares)
For all of Deadline’s headlines, follow us @Deadline on Twitter
Sign up for Newsletters
Trending Now on Deadline
Netflix Nabs Judd Apatow Comedy Series With 2-Season Order; Paul Rust & Gillian Jacobs To Star, Legendary TV To Produce
More From Fleming Jr
- RatPac Entertainment Sets Paul Neinstein To Be COO
- Toronto: 'The Dead Lands' Acquired By Magnet In NA Rights Deal
- 'Sons Of Anarchy's Katey Sagal Mothers Vinny Pazienza In Fight Pic 'Bleed For This'
- 'Ben-Hur' Remake: 'Boardwalk Empire's Jack Huston Lands Title Role
- Toronto: Andrew Garfield-Michael Shannon Starrer '99 Homes' Sells To Broad Green Pictures In $3 Million Deal
- 'Skull Island:' Tom Hiddleston Stars In King Kong Origin Tale