Weinsteins Improve Financial Footing on Eve of Oscars
Being the favorite to win top awards at the Oscars on Sunday for The Artist and other films isn’t the only reason Bob and Harvey Weinstein have to celebrate this weekend.
The Weinstein Company has paid off loans it got in 2010 from Goldman Sachs with part of a $150 million revolving credit facility from Union Bank and now is looking at a new production fund for as much as $200 million, according to a report in the Los Angeles Times and other sources.
This marks a major turnaround for the Weinstein’s, who in 2009 had borrowed $75 million from Ziff Brothers and in 2010 made the deal with Goldman Sachs for another $50 million loan. As part of the Goldman deal, they also got money from an insurance company settlement, but had to turn over control of 200 titles from their library as part of the financing package.
The Weinstein Company has been able to recover its financial strength thanks to the success of The Kings Speech, which has grossed about $139 million in North America, and the domestic success of The Artist (which has grossed about $55 million to date) and Iron Lady ($24 million to date).
They have also been bolstered by output deals with Showtime, Anchor Bay and most recently Netflix, which provide leverage to borrow more funds. They are said to be in talks with various banks about a debt-financing package of from $100 million to $200 million.