| Your Bank's Entertainment Division Balance Sheet or Securities/Commercial Paper as Collateral for Qualified Film & Television Projects _____ Also for Non-Entertainment Deals - No Industry or Geographic Limitation |
Introducing an opportunity for Your Bank to offer qualified film and television projects a debt
financing solution that saves the bank capital, increases revenue and allows seasoned
producers to obtain debt financing that was designed for the entertainment industry’s
unique needs.
Your Bank still safeguards and mitigates risk by requiring projects to have a seasoned
producing team, distribution commitments(along with other acceptable collateral), and
a completion bond.
Instead of Your Bank using capital to fund the project it can provide:
1) Off the Balance Sheet Transaction – For private unrated banks or rated banks that have
approximately $50B in assets. A private lending institution’s legal counsel can work with
Your Bank’s legal counsel to agree on an unconditional guarantee that the private institution
can loan against. This is for projects that have a minimum budget of $5MM and would be
ideal for studio backed tentpole pictures and film slates as the private lending institution can
loan $100MM - $500MM + in a 21 day time frame.
This would NOT be a loan based on Your Bank’s credit. Since the assets are approximately
$50B, the current credit rating is not a factor.
2) An extension of credit by issuing a security or paper that unconditionally covers principal
and interest for a two year minimum. This is for projects that have a minimum budget of
$5MM and would be ideal for studio backed tentpole pictures and film slates as the private
lending institution can loan $100MM - $500MM + in a 21 day time frame.
This would be an unsecured loan scenario based on the current credit rating of the bank.
The bank’s credit is the collateral.
For both of these scenarios, there are no liens on Your Bank’s assets.
In exchange, Your Bank enjoys an equity position in a major studio motion picture or slate
as well as maintains 1st position on all revenues and is at the top of the waterfall or
whatever it works out with the producers. The lending side is not involved in this.
Producers enjoy these lending benefits:
• No risk assessment
• No approval of projects
• No equity
• No lender fees
• No money down
• 100% LTV minus an interest reserve
• 100% to 120% of the budget at closing (not a line of credit)
• Loan is non-recourse to borrower and project (lender calls on the bankable guarantee,
not the project)
• Funding time line of 5 days after final docs
• No post funding reporting
• No oversight (audits, frequent reviews, board representation)
• No covenants and reporting to credit agencies
• Simultaneous closing is possible
• Ability to defer principal and interest to let the project makes its money
Our primarily private lender and its sister company are in New York and Philadelphia
respectively. This lender is not Boston Private as many have misunderstood. BP has only
been used as a banking reference.
This opportunity is presented by a Southern California private investment banker. He is a
commercial client of Wells Fargo. His banking and legal references can verify lending
relationships and a capacity to fund in a 21 day time frame. One such lender has billions in
verifiable closings with Fortune 500 companies. Private investment banker also has direct
working relationships with JPMorgan Chase and Boston Private.
financing solution that saves the bank capital, increases revenue and allows seasoned
producers to obtain debt financing that was designed for the entertainment industry’s
unique needs.
Your Bank still safeguards and mitigates risk by requiring projects to have a seasoned
producing team, distribution commitments(along with other acceptable collateral), and
a completion bond.
Instead of Your Bank using capital to fund the project it can provide:
1) Off the Balance Sheet Transaction – For private unrated banks or rated banks that have
approximately $50B in assets. A private lending institution’s legal counsel can work with
Your Bank’s legal counsel to agree on an unconditional guarantee that the private institution
can loan against. This is for projects that have a minimum budget of $5MM and would be
ideal for studio backed tentpole pictures and film slates as the private lending institution can
loan $100MM - $500MM + in a 21 day time frame.
This would NOT be a loan based on Your Bank’s credit. Since the assets are approximately
$50B, the current credit rating is not a factor.
2) An extension of credit by issuing a security or paper that unconditionally covers principal
and interest for a two year minimum. This is for projects that have a minimum budget of
$5MM and would be ideal for studio backed tentpole pictures and film slates as the private
lending institution can loan $100MM - $500MM + in a 21 day time frame.
This would be an unsecured loan scenario based on the current credit rating of the bank.
The bank’s credit is the collateral.
For both of these scenarios, there are no liens on Your Bank’s assets.
In exchange, Your Bank enjoys an equity position in a major studio motion picture or slate
as well as maintains 1st position on all revenues and is at the top of the waterfall or
whatever it works out with the producers. The lending side is not involved in this.
Producers enjoy these lending benefits:
• No risk assessment
• No approval of projects
• No equity
• No lender fees
• No money down
• 100% LTV minus an interest reserve
• 100% to 120% of the budget at closing (not a line of credit)
• Loan is non-recourse to borrower and project (lender calls on the bankable guarantee,
not the project)
• Funding time line of 5 days after final docs
• No post funding reporting
• No oversight (audits, frequent reviews, board representation)
• No covenants and reporting to credit agencies
• Simultaneous closing is possible
• Ability to defer principal and interest to let the project makes its money
Our primarily private lender and its sister company are in New York and Philadelphia
respectively. This lender is not Boston Private as many have misunderstood. BP has only
been used as a banking reference.
This opportunity is presented by a Southern California private investment banker. He is a
commercial client of Wells Fargo. His banking and legal references can verify lending
relationships and a capacity to fund in a 21 day time frame. One such lender has billions in
verifiable closings with Fortune 500 companies. Private investment banker also has direct
working relationships with JPMorgan Chase and Boston Private.
| Save the cost of having a SBLC issued as they have to be backed by cash. ____ A borrower would have to find a cash/cash equivalent investor to back the SBLC then give the investor equity. ____ Save the equity as no one on the lending side takes equity. |
| Holiday Shutdown For most financial institutions, no business is done from Mid December to Mid January ____________ However our private lenders work through the holidays |