Lionsgate Studio raises PIPE amount to $225 mln ahead of closing SPAC deal

Lions Gate Entertainment

12/04/2024 14:58

April 12 (Reuters) - Lionsgate Studio raised its private
investment in public equity (PIPE) amount to $225 million ahead
of its merger with Screaming Eagle Acquisition  SCRM.O , the
special purpose-acquisition company (SPAC) firm disclosed in a
regulatory filing on Friday.
    The blank-check deal was initially expected to raise $175
million in PIPE financing for Lionsgate from mutual funds and
other investors. 
    Through PIPE deals, SPACs raise additional funds from
private investors, including hedge funds and institutions, in
exchange for shares before the deal is completed.
    While an upsize in a PIPE deal can signal strong investor
confidence and improved liquidity, it may also result in
dilution for existing shareholders. 
    Lionsgate had last year agreed to spin off its studio in a
deal valued at about $4.6 billion, including debt, to create a
new public firm for its film and television assets, which
include about 18,000 titles.
    The amount of proceeds expected to be delivered to Lionsgate
has also been upsized to between $350 million and $409.5
million, from $350 million previously, the filing showed.

 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by
Shailesh Kuber)
 ((ArasuKannagi.Basil@thomsonreuters.com;))