A24 Increases Its Credit Facility to $125 Million
Comerica Bank structured the transaction with Union Bank serving as syndication agent.
A24 has increased its corporate credit facility to $125 million, it was announced Tuesday. Comerica Bank structured the transaction with Bank of America, J.P. Morgan and SunTrust joining and upsizing the credit facility, which was originally set at a $50 million line of credit when set up by Comerica and Union Bank in 2014. Union Bank acted as the syndication agent for the new transaction.
A24 will use the capital from the Comerica-led facility to continue to build upon its core film distribution business, as well as to expand its film development/production and television businesses, the company said.
A24 scored seven Oscar nominations across three films — Room, which is up for best picture, lead actress Brie Larson, directing and adapted screenplay; Ex Machina, nominated for best original screenplay and visual effects; and best documentary nominee Amy.
“Comerica and Union have been with us since the beginning and have been instrumental in providing the resources and flexibility we required to build our company and our brand,” said A24’s Matthew Bires. “The addition of Bank of America, J.P. Morgan, and SunTrust to our bank group represents a tremendous vote of confidence in our business model and real validation of the work our team has done over the last four years. We look forward to working with all of our partners as we continue to grow A24 and drive value for our stakeholders.”
Todd Steiner of Comerica’s Entertainment Group commented, “Our ability to increase the size of A24’s credit facility was made possible by the company’s great success to date. We are pleased that we could help provide them with additional capital to execute their long-term business plans.”
Joshua B. Grode and Paul Swanson of Irell & Manella advised A24 on the deal. Alissa Miller of Akin Gump represented Comerica.