Deutsche Bank was retained by Relativity to aid in the creation of the structure of Gun Hill Road and together with Relativity raised the overall capital. Deutsche Bank underwrote the entire senior debt.
The 18 motion pictures, in various film genres will be released over the next two years. Each film under this new funding program was individually selected by Relativity for financing based upon the strength of its respective film package, including cast, director, production teams and studio management. The respective studios will retain creative control as well as worldwide distribution of their feature films.
Studios overall have been exploring new co-financing programs. Sony Pictures Entertainment and Universal Pictures have sought out equity investors as a way to extend their production resources.
"This was a deal that could not have been done without the focus and determination of the Deutsche Bank team, nor without the tireless efforts of Sony's Sean Carey and Stefan Litt as well as Universal's James Horowitz and Michael Joe. We are delighted to be in business with both studios and Deutsche Bank," stated Ryan Kavanaugh.
"This deal was finalized in record time and we believe it will set a new precedent in the financing of major studio films." Lynwood Spinks further stated, "Both studios have been leaders in providing quality filmed entertainment in recent years. We have confidence in the film packages and the highest regard for both studios' production and management teams."
About Relativity Media
Beverly Hills-based Relativity Media, LLC is a financing, consulting and production company that structures slate financing for both major studios and independent production entities. Relativity recently facilitated a $528 million multi-picture, co-financing arrangement for Warner Bros. Pictures as well as a $525 million financing a deal for Marvel Enterprises. Relativity also recently structured and raised a 120 million Euro acquisition, production and distribution fund for Exception Wild Bunch S.A., the French distribution and sales company founded by former Studio Canal management. To date, Relativity has structured and consummated more than $3.2 billion in production financings.
In addition, through its partnership with Virtual Studios, Relativity finances two-to-three single pictures per month. Relativity arranged the financing for and executive produced two films from Mark Canton's Atmosphere Entertainment MM, George A. Romero's Land of the Dead (Universal) and Full of It (New Line).
Most recently, Relativity arranged the financing for and will executive produce Conquistador, to be directed by Cannes and Sundance award-winner Andrucha Waddington, as well as Morgan's Summit, a drama written and to be directed by Academy Award(C) winner Tom Schulman (Dead Poets Society) and starring Bruce Willis.
In addition, Relativity arranged the financing to bring the Top Cow Productions' Witchblade to the big screen, with production beginning in 2006 on two feature films to be shot back-to-back. Films are based on the best-selling action/fantasy comic book, which also earned a loyal following as a TNT television series.