Dreamworks deal with Reliance awaits debt financing

 

Man, you know the debt markets are something awful when even Steven Spielberg is having a tough time getting a loan.

But that’s exactly what’s holding up the DreamWorks co-founder and his cohorts from launching their new movie company with an equity infusion from India’s Reliance Big Entertainment. Although Reliance is poised to invest $500 million in the venture for a 50% ownership stake, that deal hinges on the group getting a firm guarantee from lead bank JPMorgan Chase to raise up to $700 million in debt financing to satisfy the business plan to make four to six movies a year. JPMorgan, which will not underwrite the entire portion of the loan as DreamWorks had hoped, will now attempt to syndicate it -- and that could take months. People close to the matter say that DreamWorks is still looking for further clarification on the term sheet it recently received from the lead bank and that negotiations are continuing.

(LA Times)


Film Business, Hollywood


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