China's Perfect World Secures $250M for Universal Pictures Slate Financing
"The deal should reassure people that the China-Hollywood partnership is alive and well," said Lindsay Conner, the attorney representing the Chinese studio.
China's Perfect World Pictures has closed a $250 million credit facility with East West Bank and JPMorgan to capitalize the second phase of its ongoing five-year slate finance agreement at Universal Pictures.
In a deal unveiled in January 2016, Perfect World agreed to co-finance 50 films across the Universal slate over a half-decade. Sources told The Hollywood Reporter at the time that Perfect World would be getting a 25 percent share of most, but not all, of the films released by Universal until approximately the end of 2020. The names of the titles that were carved out of the agreement were never made public.
Perfect World made an initial $250 million equity investment, with plans to raise between $200 million-$250 million in debt at a later date. This second piece has now been secured.
"This credit facility represents a continuing commitment by Perfect World Pictures to the Universal slate finance deal," said Manatt, Phelps & Phillips partner Lindsay Conner, who represented the Beijing-based entertainment firm. "The deal should reassure people that the China-Hollywood partnership is alive and well. It shows that sophisticated Chinese entertainment companies remain strong partners for Hollywood studios."