If Bruce Wayne weren’t Batman, etc. ;)
Originally posted on Finance topics, trends, & specific term sheets:
A European film fund is now offering short to medium term loans and debt, mezzanine and 1% pm bridge finance to a portfolio of US and UK film companies engaged in production of feature films with ‘A’ list talent distributed globally across theatrical, TV, and other platforms. Loans are secured by pre-sales contracted ‘receivables’ and government-backed tax credits and rebates discounted from 20%.
The film fund prefers film budgets between $5M and $20M with firms with a track record. The fund does not invest equity and takes no box office risk for senior debt capital. Loan facilities are set up for draw down to fund production based on approved cash flows. Terms for senior debt is 12-18 months. The Film Fund also offers 15% preferential debt capital (mezzanine) based on discounting of future sales.
Risk is mitigated though a 3rd party completion bond company engaged by the fund to monitor…
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