Germany's Senator Entertainment Raises $6.5 Million in First Bond Issue
The struggling Berlin-based producer/distributor will use the cash to finance operations as it restructures.
Berlin-based producer and distributor Senator Entertainment has successfully raised around $6.5 million (€4.75 million) to help finance its restructuring efforts after the first tranche in its short-term bond issue was fully subscribed.
Senator's nine-month bond has a possible total volume of $13.6 million (€10 million), half of which the group successfully placed with institutional investors. After the 5 percent discount on the bond, Senator is left with $6.5 million to keep the lights on while its overhauls its business.
After a disastrous 2013, in which the company booked a net loss of $38 million, Senator has changed tack to fill its distribution slate more with in-house productions and international co-productions and less with costly U.S. acquisitions.
Many of Senator's highest-profile and pricey pickups released last year, including David O. Russell's Silver Linings Playbook, Steven Soderbergh's Side Effects and Paul Thomas Anderson's The Master, proved to be duds at the German box office.