MUMBAI: As part of the growth of its motion picture business, filmed entertainment studio Lionsgate has closed a theatrical slate financing deal.
The deal creates a funding entity, LG Film Finance I, LLC, which will be co-owned by Lionsgate and privately-owned Pride Pictures LLC, which was formed specifically for this transaction. The fund will provide an aggregate of up to $400 million in financing for the production, acquisition, marketing and distribution of theatrical feature films, inclusive of Lionsgate’s matching contributions. The slate covered by the financing is expected to be comprised of 23 films over the next three years, kicking off with last weekend’s wide release of director William Friedkin’s critically-acclaimed Bug, starring Ashley Judd, and including such upcoming releases as the teen comedy Good Luck, Chuck, starring Dane Cook and Jessica Alba, the action film War, teaming Jet Li and Jason Statham, and 3:10 To Yuma, starring Academy Award-winner Russell Crowe and Christian Bale and directed by James Mangold.
“This deal underscores our commitment to maintain our conservative risk profile while preserving the upside potential of our releases as we continue to grow the business. This partnership is a win/win for Lionsgate and the other participants in the financing. It is the next logical step in the ongoing execution of our business plan, and we will continue to explore other innovative financing opportunities as well,” said Lionsgate CEO Jon Feltheimer.
Concurrently with the LG Film Finance transaction, Pride Pictures closed on a set of related financing transactions which raised gross proceeds of $204 million that, net of fees and expenses, will be committed to the aggregate financing of up to $400 million, with Lionsgate providing the balance.