ErosSTX in talks to sell its subsidiary STX Entertainment

The company, however, said there can be no assurance that the negotiations or any process will result in a transaction

e4m by exchange4media Staff
Updated: Nov 17, 2021 11:27 AM  | 2 min read
eros

Eros STX Global Corporation has entered into exclusive negotiations with a third party for the sale of its STX Entertainment subsidiary, during which the parties will conduct mutual diligence and negotiate definitive agreements. The company has engaged Lazard as a financial advisor to assist in the sale process.

In a statement, the company said that there can be no assurance that the negotiations or any process will result in a transaction. The company does not intend to provide announcements or updates unless or until it determines that further disclosure is appropriate or necessary, it added.

On November 12, 2021, STX Financing, LLC, a wholly owned indirect subsidiary of the Company, entered into an amendment to its Senior Credit Agreement to, among other things, extend both the maturity date and the delivery date of financial statements under the Credit Agreement to December 3, 2021.

These dates may be further extended to January 4, 2022 if the Company has executed definitive agreements to sell the Company’s STX Entertainment subsidiary prior to December 3, 2021, and may be further extended to February 3, 2022 if such definitive sale agreements remain in effect on January 4, 2022. As of November 12, 2021, $127.4 million remained outstanding under the Credit Agreement.

On November 12, 2021, STX Financing LLC entered into an amendment to its subordinated credit agreement (as amended, the “Mezzanine Facility”) to, among other things, permit STX to promptly deliver the required financial statements once they become available. As of November 12, 2021, $23.4 million remained outstanding under the Mezzanine Facility. The Mezzanine Facility is set to mature on July 7, 2022.

Eros STX Global Corporation is a global entertainment company that acquires, co-produces and distributes films, digital content and music across multiple formats such as theatrical, television, and OTT digital media streaming to consumers around the world.

Eros International Plc changed its name to Eros STX Global Corporation pursuant to the July 2020 merger with STX Entertainment, merging two international media and entertainment groups to create a global entertainment company with a presence in over 150 countries. ErosSTX delivers star-driven premium feature film and episodic content across a multitude of platforms at the intersection of the world's most dynamic and fastest-growing global markets, including US, India, Middle East, Asia, and China.

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