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No. of Recommendations: 2
Rolling their debt is not an issue: On February 4, 2019, Lions Gate Capital Holdings LLC (LGCH), an indirect wholly owned subsidiary of Lions Gate Entertainment Corp. (the Company), completed its previously announced offering (the Offering) of $550,000,000 aggregate principal amount of its 6.375% senior notes due 2024.
Prior to that they issued similar amount at 5.875, so costs have gone up a whole 50 bps.

Term Loan B at Libor +375 floored at 0.75%. Net annual interest expense is around $93m prior to the above issuance.

EV/ebitda is 2.6x. Company has $380m in cash prior to above issuance. Debt is Ba3 from Moody's. Last fiscal year they reduced debt by $650m and re-introduced a dividend.

They also have s2 of American Gods coming, Counterpart s2 just ended, and a British production of one of my favorite recent novels The Rook coming out as well.

Apple streaming is supposed to include Starz starting in April, so increased revenue there.

LGF also produces 6 series for NFLX, including Orange is the New Black. Starz comprises Encore and MoviePlex as well.

They launched a theme park in Dubai last year, and are launching two more in China and Korea, lotta upfront costs that will begin to cashflow.

Starz Canada, Mideast and Africa just launched last year so expect more growth there.

If it wasn't risky it wouldn't have fallen 50% in a year. But the assets and operating cash flow look pretty darn cheap to me.

Long LGF,
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