Relativity gets $300 million in new financing
Funds will be earmarked for co-productions with UniversalRelativity Media on Thursday announced an agreement with two lenders to provide a $300 million credit facility to fund film production.
The Los Angeles-based company said funds from the new financing with Comerica Bank and Union Bank will be earmarked for its slate of co-productions with Universal. The funds will supplement other financing of the Uni slate through Relativity's Beverly 2 subsidiary.
Under a deal struck last year, Relativity will finance three-fourths of Uni's film sale through 2015.
"We are very happy to continue to build our relationship with Comerica Bank and Union Bank, which has resulted in significant business over the past several years," Relativity chief Ryan Kavanaugh said. "They have been great partners and continued to be through the course of this transaction."
Relativity shareholder Elliott Management 's Jesse Cohn said the financing will help Relativity "further optimize its capital structure."
Union senior vp Bryan LaCour called the transaction "significant," and Comerica senior vp Jared Underwood also lauded the extension of the lender's relationship with Relativity.