Relativity Media has closed a deal for $350m in debt financing that the company said will be used to fund planned expansion and future film projects.
Los Angeles billionaire and film investor Ron Burkle, a significant equity holder in Relativity, is an anchor investor in the deal through his relationship with Colbeck Capital, which advised on and structured the deal as well as being a participant.
Last year, Burkle reportedly loaned Relativity $200m through Colbeck to help fund the release of Immortals.
As part of the deal, Relativity, which is majority controlled by company CEO Ryan Kavanaugh (pictured), gets a new board including Burkle and Colbeck partners Jason Beckman and Jason Colodne.
Relativity said the deal includes “at least a dozen of the most reputable banks and institutional lenders in the industry.” MESA Global advised on the capital raised.
In a statement, Kavanaugh said the deal “marks a significant step forward for Relativity and firmly positions us for exciting new endeavours. We are thankful to our passionate partners for all of their efforts and support.”
Colodne and Beckman said: “We have had a chance to work closely with Relativity and Ryan over the past six months and we are incredibly excited about the business, the quality of its assets and long term growth prospects.”
Burkle added: “We have been actively involved with and considered acquiring many film studios during the past few years. We’re always looking for good investment ideas, which are very hard to find in Hollywood, and we believe we’ve made one with Ryan. After doing in-depth analysis of Relativity, we determined it is one of the most well positioned, unique studios poised for growth and structured for today’s unique content environment.”
Besides Immortals, Relativity’s recent releases have included Safe House and Mirror Mirror. Upcoming releases include House at the End of the Street and 21 and Over.