Benzinga | Nov 16, 2021 08:36AM EST

Eros STX Global Reports Entered Exclusive Talks For Sale Of Its STX Entertainment Unit; Extends STX Debt

Eros STX Global Corporation (NYSE:ESGC) ("ErosSTX" or the "Company") today announced that it 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.

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.

STX Debt Extension

On November 12, 2021, STX Financing, LLC, a wholly owned indirect subsidiary of the Company, entered into an amendment to its Senior Credit Agreement (as amended, the "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.