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Entertainment One Ltd Closing of Senior Secured Notes Offering at 4.625%

Entertainment One Ltd (LON:ETO) announce today the closing of its offering of £425 million in aggregate principal amount of 4.625% Senior Secured Notes due 2026.

The proceeds of the offering has been used to redeem the Company’s £355 million in aggregate principal amount of 6.875% Senior Secured Notes due 2022 (the “Existing Notes”), repay its outstanding term loan (£52 million, in relation to the recent acquisition of Audio Network) and pay fees and costs 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 £8 million of interest per annum on the Company’s Existing Notes

·    Extension of the maturity of the Company’s debt facilities to 2026

Darren Throop, Chief Executive Officer, commented:

“The closing of our new Notes offering secures long term financing to support eOne’s future growth plans and the material reduction delivered to our borrowing cost reflects the strength of our position in the market.”