Eros takes $100 million credit line
EmptyNEW DELHI -- London-based Eros International, a producer and one of the world's largest distributors of Bollywood films, has secured a five-year, $100 million financing facility from Citigroup Global Markets Ltd., Eros said Wednesday.
Citigroup has underwritten the financing facility, intended to be used by Eros for acquisitions, part of its "strategy of consolidating the fragmented Indian entertainment content sector."
Eros recently acquired a 51% stake in South Indian Tamil-language film company Angaran International for an undisclosed amount.
In July 2006, Eros raised 22.5 million pounds ($45.24 million) via a listing on London's Alternative Investment Market. In its first financial statement following the AIM listing in March, Eros posted a net profit of $28.3 million, a 76% jump from the previous financial year, while its profit rose 48.6% to $66.4 million.
Last year, Eros spent $55.2 million on new film and music rights, in addition to the $17.4 million it spent locking up existing rights acquired as part of the corporate reorganization at flotation. During its latest fiscal year, which ended March 31, it committed another $33.3 million on rights to existing projects with third-party producers and about $3.4 million on other productions to be completed in 2007-08.
Over the last year, Eros has had a successful run at the boxoffice, grossing $50 million thanks to hits like "Namstey London" (Hello London) and "Partner."