Join our community of smart investors

ETO has a debt issue

Investors sold off shares in Entertainment One after news broke of an expensive debt issue.
December 11, 2015

UPDATE: Shares in Entertainment One rallied 15 per cent on Wednesday after the group reassured investors that trading remained on track and that the debt issue supported its growth ambitions. Chief Darren Throop also shelled out £183,000 on shares in the company.

IC TIP: Hold at 154p

Investors sent shares in Entertainment One (ETO) down more than a quarter in two days after the group unveiled plans to raise £285m via a debt issue at a higher than expected coupon rate of about 6.9 per cent. The move prompted several city analysts to cut their target prices or downgrade their recommendations.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in