Hasbro has completed its acquisition of Entertainment One in a $3.83 billion transaction.
According to a related 8-K filing, Hasbro entered into a $1 billion term loan agreement with Bank of America as administrative agent and certain financial institutions, as lenders. The lenders are committed to provide, contingent on completion of the acquisition and certain other customary conditions to funding, a three-year senior unsecured term loan facility in an aggregate principal amount of $400 million and a five-year senior unsecured term loan facility in an aggregate principal amount of $600 million.
Upon the closing of the acquisition, Hasbro borrowed the full amount of the term loan facilities. The proceeds of the term loan facilities were used by Hasbro to pay a portion of the Consideration and other amounts payable in connection with the acquisition.
“We are excited about what we can do together and see tremendous opportunity for shareholder value creation through this acquisition,” said Brian Goldner, Hasbro chairman and chief executive officer. “Our businesses are highly complementary with substantial synergies and a great cultural fit. The addition of eOne accelerates our blueprint strategy by expanding our brand portfolio with eOne’s beloved global preschool brands, adding proven TV and film expertise, and creating additional opportunities for long-term profitable growth. We are pleased to welcome the incredibly talented eOne team to our company.”
The all-cash transaction is valued at approximately £2.9 billion ($3.83 billion), based on the consideration of £5.60 ($7.40) per common share of eOne. Converted at a rate of 1.31 USD/GBP on December 30, 2019, the total cash consideration was approximately $3.8 billion. Hasbro also expects to redeem eOne’s outstanding senior secured notes and to pay off the debt outstanding under eOne’s revolving credit facility, which together represent approximately £0.6 billion of eOne’s indebtedness.
Hasbro is a global play and entertainment company.
