Twilight Making It Possible For Summit to Revamp Finances

According to Bloomberg News (a leading source on all things financial), Summit is now in a position, thanks to the success of the Twilight movies, to pay off debt, finance productions, and pay dividends to investors.

Statistically, most start-up, indie movie companies don’t even break even, they flop. Summit is an exception with the Twilight films putting them in the black, and giving them options they wouldn’t otherwise have had.

“The proposed refinancing includes a $600 million, seven- year term loan and a $200 million revolving credit facility, New York-based Moody’s Investors Service said today in a report giving the company a B1, non-investment grade rating…Summit is benefiting from “significant” cash flow from the “Twilight” films that reduces risk for investors, Moody’s said. The first three movies in the series generated $1.8 billion in global ticket sales, according to Box Office Mojo, an industry researcher. Two more films are planned.”

As an young, indie company Summit has struck some of its notable success with the Twilight films, The Hurt Locker (Academy Award Picture of the Year 2009), Red(which has just been greenlit for a sequel), and Push. See the entire article here on Bloomberg.

EDITED: The LA Times has now added their two cents to the story.

“The studio’s co-chiefs Rob Friedman and Patrick Wachsberger have said that they would consider buying other small entertainment companies or film libraries. They have also said they want to expand into television production through acquisitions or internal investment.

In its analysis, Moodys cited as its chief concern a question often asked in Hollywood: Can Summit maintain its successful track record after releasing the final “Twilight” movies in 2011 and 2012?

“We remain cautious about the sustainability of strong credit metrics beyond 2012,” the Moody’s analysis said, “given the end of the ‘Twilight’ franchise, uncertainty about a replacement franchise and the volatile nature of the company’s business.”

Future improvements or downgrades in the rating, Moody’s added, will depend on the success or failure of its new films that will allow it to pay down debt at a faster or slower rate.”

See the entire LA Times take here.

Comments

  1. I will always be grateful that a young indie company like Summit took a chance on Twilight when everyone thought it was just a small, indie flick that might become a cult classic. I remember when getting the movies made was a dream for all of us and now we’re heading into the home stretch.

  2. I’m glad Summit gave Twilight a chance. They can always hope Stephenie writes more books right? haha! I think they will do fine. IF they pick the right movies.

  3. I agree, and thank-you Summit.

  4. I think it’s really cool that a small indie company like Summit managed to pull out and start making some money, and that Twilight helped them with that. And I had no idea that they were the company behind The Hurt Locker! I haven’t actually seen the movie, but I know it got six Oscars and my dad and brother always go on about how great it was. I also thought Red was a really funny, entertaining movie. It makes me happy to know that Summit has been able to get some cash in and can grow larger as a result :)

  5. Like others have said I am thankful that this small indie company gave Twilight a chance & didn’t want to do the crazy changes that were first discussed when another company had the rights. (I don’t remember exactly all the details. It’s in the TW Official Illustrated Movie Companion book.) Now it’ll be interesting to see how they do after the Twilight franchise.

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