Entertainment One completes controversial refinancing deal

Entertainment One has completed its refinancing arrangement which was announced to shareholders at the beginning of the month.

The FTSE 250 company has issued £285m of 6.875% senior secured notes due in 2022, and entered into a new £100m revolving credit facility which matures in 2020.

It said the net proceeds have primarily been used to repay the Company's previous credit facilities, and pay fees and expenses related to the refinancing.

The company, which owns Peppa Pig, had been under pressure since announcing the arrangement.

On Wednesday it explained to shareholders that the combination of this new non-amortising, fixed rate debt financing and revolving credit facility provides the company with a long-term capital structure appropriate for its strategic ambitions.

It also said the refinancing permits greater flexibility by relieving constraints and costs the group historically suffered when undertaking acquisitions and other corporate activity, and allows it to react swiftly to commercial opportunities, whilst also removing other restrictions typical of bank loan-based financing structures.

Shares in Entertainment One dipped marginally on the news, down 0.22p (0.12%) to 176.78 at 0937 GMT.