Legendary Aiming to Borrow $700M for Film Financing (Report)
The independent studio is looking to replace an existing $600M credit facility which matures in 2016.
Legendary Entertainment is in talks to borrow as much as $700 million from JPMorgan Chase & Co. and Bank of America Corp. to make films, according to a report on Bloomberg.
The Thomas Tull-led independent studio is seeking to replace an existing $600 million credit facility fronted by the same two banks that will mature in 2016, with Legendary looking to up the figure to $700 million on the back of strong demand, according to sources close to the discussions.
The last year has been one of great change at Legendary, with the studio ending its relationship with Warner Bros. and linking up with Universal. As well as that, Legendary raised $250 million in equity from Japan's Softbank in October and has expanded into television and signed a raft of deals.
The Bloomberg report states that Legendary is looking to take advantage of the growing interest in the entertainment industry from investors who are looking for yield in the current low-rate environment for loans.
2014, the last year of Legendary's deal with Warners, was a strong one for the studio, with global hits Interstellar and Godzilla. Despite cyber-action film Blackhat, starring Chris Hemsworth, and the Julianne Moore-Jeff Bridges fantasy flick Seventh Son disappointing at the box office in 2015, Legendary should score big with Jurassic World, which is released in June, and is also backing the NWA biopic Straight Outta Compton, which hits theaters in August.