New York, September 23, 2016 -- Moody's Investors Service confirmed Lions Gate Entertainment Corp.'s ("LGF") Ba3 Corporate Family rating (CFR) and Ba3-PD Probability of Default rating following the company's announcement earlier this year to acquire Starz, LLC ("Starz") for cash and stock. Concurrently, Moody's assigned a Ba2 rating to the company's new first lien senior secured credit facility, consisting of a $1 billion revolver due 2021, $1 billion term loan A due 2021 and a $1.9 billion term loan B due 2023. Moody's also changed the company's Speculative Grade Liquidity rating from SGL-3 to SGL-1. The rating outlook was revised from ratings under review for downgrade to stable. Moody's will withdraw ratings on both companies' existing debt instruments and the Starz CFR and PDR once all the debt is repaid upon closing of the transaction.
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