As the independent sector continues to navigate choppy waters, a number of savvy sales and finance outfits are leaning on film funds and credit facilities to give themselves a competitive edge.
Back in May, Glen Basner’s FilmNation Entertainment secured $50 million in additional capital from Bank of America Merrill Lynch and Union Bank for an equity-backed, part debt, revolving credit facility. The same month, the Solution Group joined forces with Siren Studios to raise a $50 million revolving equity film fund to finance six to 10 movies a year.
“We had been trying to find ways to grow our business and we needed access to equity to do that,” says Basner, whose company’s longstanding relationship with a number of individuals at both banks, many of whom had overseen a raft of single picture deals with FilmNation, helped spur on the deal. The first film to use capacity on the debt side is David Michod’s “The Rover,” toplining Guy Pearce and Robert Pattinson. The company is putting together the first three productions that will benefit from the equity.
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