The new independent co-financing package, which is separate from the previously announced Gun Hill 1 and Gun Hill 2 deals, will be a five-year revolving credit facility.
The new venture, called Beverly Blvd LLC, will co-invest in the majority of films released by Columbia Pictures during the term of the fund and, in general, allows Sony Pictures Entertainment to reduce the effective cost of the films financed under this facility.
Specific titles and exact details of the Beverly Blvd LLC deal were not disclosed. Citigroup provided the senior and mezzanine financing for the Beverly Blvd LLC facility.
'Sony Pictures Entertainment has been exploring new co-financing deals as a way to extend the studio's production resources,' said Bob Osher, Chief Operating Officer, Columbia Pictures Motion Picture Group on Monday.
'This is the third deal we have completed with Sony since December, 2005. With thirteen number one openings and the studio's number one domestic market share last year, we firmly believe in the strength of the studio's slate, distribution capabilities, and especially in their management team,' said Relativity principal Ryan Kavanaugh.
Relativity Media has previously arranged approximately $750m in co-production financing for Columbia Pictures' films through Gun Hill 1 and Gun Hill 2, both of which were announced last year.
Relativity's Ryan Kavanaugh is one ofthe featured speakers at Screen International's FINANCING FILMS INAMERICA conference in London on March 20th.