The Hollywood reporter got the exclusive on what is happening over at Summit in regards to refinancing. Talk of this first started earlier this year, but now, The Hollywood Reporter has learned the following:
“Vampires turn out to be a bloody good investment.
Soaring with the success of the Twilight movie franchise, Summit Entertainment is on the verge of closing $750 million in new financing that will allow the production and distribution company to pay off its high-interest debt load, provide a solid financial footing for the future and pay a $200 million dividend to investors and key members of the management team, The Hollywood Reporter has learned.
The refinancing, expected to close this week, was arranged by J.P. Morgan and UBS AG and consists of a $550 million loan with a term of five and a half years and a $200 million revolving line of credit guaranteed against future revenues from movies, including the two sequels to Twilight currently in production.
That money, plus profits that have accumulated from movie distribution and merchandise licensing, mostly from Twilight, will go to pay off debt from the original formation of the modern Summit in 2007, and monies owed on the current revolving line of credit.”
It’s a pretty impressive deal for a company that has more or less revamped itself into a solid player in the last five years. See the fine tuned details on The Hollywood Reporter.