Entertainment One Share News (ETO)

(ShareCast News) - Peppa Pig owner Entertainment One confirmed that the company continues to trade in line with full year underlying earnings expectations, as it responded to recent weakness in its share price.The stock has been under pressure since the company announced a refinancing deal that will increase its interest payments.Last Friday, the group said it had priced its £285m offering of 6.875% senior secured notes, saying it would use the proceeds to refinance existing credit facilities in full.It said on Wednesday 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.In addition, 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."The company continues to have confidence in its target of doubling the size of the business by 2020, with strong organic growth and carefully targeted acquisitions, and will issue a trading update during the fourth quarter of the financial year, in the usual way."Peel Hunt, which had downgraded its rating on the stock to 'reduce' a day earlier, lifted it back up to 'buy' following the statement. The broker said it expected the shares to rise after the aggressive falls of late as the market digested another reduction in earnings per share so soon after the interims and the dilutive rights issue.At 1325 GMT, shares were up 15% at 161.02p.