Paramount secures $300 million film finance

MUMBAI: Viacom’s Paramount Motion Picture Group and Dresdner Kleinwort has inked a $300 million film financing arrangement.

The fund, named Melrose Investors 2 LLC (Melrose 2), will invest in the production of at least 30 films. Films funded through the arrangement include releases from Paramount Pictures, DreamWorks SKG, MTV Films and Nick Movies. Paramount Vantage and Paramount Classics releases are not part of the fund.

Upcoming 2007 releases funded under the deal include: Freedom Writers, Norbit, Shooter and The Spiderwick Chronicles. The arrangement has also funded films from the 2006 PMPG slate including Jackass: Number Two, World Trade Center and Nacho Libre.

Melrose 2 is the follow-up transaction to the 2004 Melrose Investors LLC fund. Melrose Investors LLC invested $225 million in 25 PMPG releases commencing with Mean Girls.

“The successful closing of Melrose 2 demonstrates a strong investor appetite for the film sector, as well as Paramount’s considerable appeal to the investor community. Paramount’s movie labels reach a diverse set of moviegoers – from kids and teens to adults and families – and we have every confidence in the films being assembled under the leadership of Brad Grey and his team,” said Dresdner Kleinwort managing director and head of media, global banking Laura Fazio.

Paramount engaged Dresdner Kleinwort to advise on the development of the co-financing structure and arranged its funding.