It should.
(from CRD)
playing a card
Following is a detailed procedure for playing a
non-site card. (...)
5. Respond to the playing of The Card (and
to losing initiative if necessary). Responses or
triggered actions that respond to the playing of
The Card happen now. If The Card has game
text on it that triggers "When you play..." The
Card, it happens now. Other cards may respond
to the card being played as well. These are
handled in the manner described under actions
and action procedure. If The Card was a Free
People's card and it leaving your hand causes you
to lose initiative, each player may respond to you
losing initiative now.
6. Perform effects of The Card.
So you lose initiative before you perform effects.