Relativity Capital, LLC to Co-Finance Most Universal Motion
Pictures Through 2011
LOS ANGELES--(Business Wire)--
Relativity Capital, a newly announced partnership between
Relativity Media and Elliott Associates, L.P., announced today the
signing of a deal with Universal Pictures to co-finance a significant
portion of Universal's release slate through 2011.
The agreement is a key milestone for Relativity in that it is the
first deal where Relativity acts as the principal and will retain the
Mezzanine and Equity. Under the deal, Relativity will co-finance
approximately 75% of Universal's releases during the term. Relativity
Capital underwrote the capital structure of the deal, and did not use
an outside bank.
Rick Finkelstein, Vice Chairman, and Michael Joe, Executive Vice
President of Universal Pictures, stated, "We could not be more pleased
to announce a financing partnership with Relativity that enables us to
continue to construct a robust slate of quality movies for our
audience. We have had an excellent working relationship with
Relativity over the past two years and are pleased to be continuing
that relationship."
Responded Relativity principal Ryan Kavanaugh, "The ongoing
relationship between Relativity and Universal has been successful for
both investors and the studio. We consider this not just a film
co-finance deal, but a true partnership. Relativity Capital, through
this transaction, will provide the studio with significant financing
for close to 45 films that we believe have significant profit and Box
Office potential. This is a perfect fit as a first investment for
Relativity Capital and its media fund. We are delighted to continue
and deepen our relationship with Universal. This deal is truly the
foundation to building our media platform."
Jesse A. Cohn, who manages Elliott Associates, L.P.'s relationship
with Relativity, stated, "Over the last few years, we have considered
many slate financing deals. These deals have nearly always paired a
strong and profitable studio with a poor structure, or a weak and
unprofitable studio with a good structure. This is the first deal
we've seen that matches a top-tier studio with a structure that
properly aligns the interests of all parties. Universal's track record
and focus on profitability are what motivated us to form this
partnership, and their willingness to structure a fair and reasonable
transaction speaks volumes about their commitment to a lasting
relationship. This is exactly the deal we have been waiting for."
Company COO Andrew Marcus negotiated on behalf of Relativity
Media.
About Relativity Media
Relativity Media, LLC is a financing, consulting and production
company that utilizes both traditional and non-traditional channels in
order to raise production and distribution funds, both for major
studios and independent production entities. To date, Relativity has
structured and consummated more than $4.5 billion in production slate
financings.
In January 2008, Relativity Media, LLC announced the formation of
Relativity Capital, a wholly-owned subsidiary, to be a principal
investor in major media transactions. Elliott Associates, L.P., a New
York-based hedge fund with $10 billion in assets under management,
will be working with and providing financing to Relativity Capital on
these media transactions. Elliott has been one of the largest
investors in Relativity Media's previous transactions. Relativity
Capital's investments will include studio slates, the Relativity
Single Picture Business, library acquisitions, and other media-related
cash flow investments.
Relativity Media
Lynda Dorf, 310-248-6105
ldorf@bwr-la.com
or
Gina Lang, 310-248-6109
glang@bwr-la.com
or
Universal Pictures
Stacy Ivers, 818-777-7216
or
Elliott Management Corp.
Scott Tagliarino, 212-974-6000
Copyright Business Wire 2008
