Weinstein Co. Raises $225 Million in Additional Financing

12:11 PM PST 06/21/2012 by Alex Ben Block
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The loans from Union Bank and UBS Investment bank, some of which are tied to revenue from new media, will be used to expand operations and will be available for acquisitions.

The Weinstein Company has closed two new debt financings that total $225 million, according to an announcement Thursday by company COO David Glasser.

The financings with Union Bank of California and UBS Investment Bank were done through the Weinstein Company’s Strategic Initiatives, Investments and Banking division. Union Bank is providing $150 million and UBS $75 million. Both are described as revolving multi-bank facilities.

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In the announcement, TWC said the two financings “will play an instrumental role in continuing TWC’s transformation as a mini-major film studio now largely supported by institutional financing,” adding it will “allow for TWC to act on opportunities worldwide as they become available.”

This is taken to mean not just acquiring movies but also making other kinds of acquisitions, such as film libraries.

“These facilities are a tremendous contribution to the continued production and acquisition of the kind of award-winning content The Weinstein Company is known for, as well as an important part of our long term growth strategy, anchoring our overall financial strength,” said Glasser in a statement adding: “We’re looking forward to growing our relationship with all of the banks involved.”

“These innovative structured financing vehicles will help TWC continue to expand in all areas including content creation and acquisition and synergy-led asset and corporate targets,” said David Hutkin, who heads the Strategic Initiatives, Investment and Banking division which was formed in the fall of 2010.

Hutkin was assisted by his vp and team leader Vivian Tarn and Director Erin Shipley. The release also credited the role of TWC CFO Andy Kim and EVP of Accounting Irwin Reiter.

TWC had closed a deal for a $150 million financing facility with Union Bank in February, on the eve of the Oscar ceremony where their movie The Artist was named best picture. That money helped pay off earlier loans tied to the value of movies in the library and put the company on a more secure financial footing.

The latest $150 million domestic-focused revolving facility was closed and agented by Union Bank’s Bryan LaCour, Tony Beaudoin and Alex Cho. They were assisted by CIT’s Wade Layton and Kevin Khanna, and UBS Investment Bank, according to the announcement. Union Bank is Collateral Administrator for this facility.

The $75 million revolving new media facility was structured and agented by UBS Investment Bank. OneWest Bank is Collateral Administrator for this UBS Facility, led by Joe Woolf.

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CB Mulhern, managing director in the private finance from of UBS, said that this loan represented a “creative solution” by finding a way to monetize TWC’s cash flow from new media.

The L.A. Office of O'Melveny & Myers worked on behalf of TWC and the Chicago office of Sidley Austin represented the agent groups on the bank facilities.

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