Thursday, August 15, 2013

Keeping the Wheels Turning

DreamWorks Animation's new money stream:

DreamWorks Animation SKG, Inc. announced [August 14th] that it has completed its previously announced private offering of $300 million aggregate principal amount of 6.875% senior notes due 2020 (the "Notes"). The Notes are unsecured, unsubordinated obligations of DreamWorks Animation SKG, Inc. and will be guaranteed by the Company's existing and future domestic subsidiaries that guarantee the Company's credit facility.

The Company intends to use the net proceeds of the offering of the Notes to repay the outstanding loans under its revolving credit facility, including accrued and unpaid interest thereon. The Company expects to use the additional net proceeds, if any, for general corporate purposes, which may include acquisitions and repurchases of the Company's common stock. ...

There's a lot of movies in the company pipeline. So it's good to keep the lights on and the doors open with some new corporate notes so that all the new product has an opportunity to get released.


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