Gearing Up for New Projects, Miramax Raises $250 Million Selling Bonds
As it gears up to develop new TV and movie projects, as well as exploit its 700-movie library, Miramax has sold $250 million in bonds and arranged for a $25 million revolving line of credit.
The company announced Thursday that it has completed the “securitization transaction” by issuing 3.34 percent notes that come due in 2026. The proceeds will be used to repay outstanding debts and notes that were issued in 2011 for general corporate purposes, including investing in new film and TV production.
“This refinancing,” Miramax chairman Thomas Barrack said in a statement, “reflects the stability and maturity of Miramax as an operating company and represents the next step in the company’s evolution.”
The notes and revolving credit facility are BBB+ rated by Standard & Poors and BBB by DBRS.
Barclays served as the advisor, helped run the deal and is the sole lender for the credit facility.
The Miramax library of films and TV shows was acquired from Disney in December 2010 for about $663 million by a group of investors that includes Barrack’s Colony Capital and the Qatar Investment Authority.
In Thursday’s announcement, Miramax said it currently is working to develop TV series based on titles including Gangs of New York with Martin Scorsese and Cop Land with James Mangold. It also is continuing with From Dusk Till Dawn with Robert Rodriguez, which recently was renewed for a second season on the El Rey cable TV network.
Miramax also is involved with the film The Wedding Ringer, starring Kevin Hart and Kaley Cuoco, which will be released by Sony’s Screen Gems division on Jan. 16, 2015.