Relativity Media Secures New Credit Facility
Relativity Media, LLC (RML) announced today Beverly Blvd 2 LLC
(Beverly 2), a wholly owned subsidiary of RML has entered into a senior secured revolving credit facility that
provides for up to a total commitment amount of $300 Million (the “Facility”). Comerica Bank and Union Bank,
N.A., jointly arranged the transaction.
Relativity plans to use amounts available under the Facility to fund pictures in its co-financing/co-production deal
with Universal Pictures. In addition, Relativity will continue to maintain a significant equity investment (and own
100% of the equity) in Beverly 2, which will be used alongside the new Facility to fund new films which are part of
the deal between Relativity and Universal.
Relativity, has an existing partnership with Universal Pictures where it is co-financing approximately 75 percent of
Universal’s slate through 2015. Relativity and Universal have been partners for over four years.
Ryan Kavanaugh, CEO of Relativity Media, said of the financing, “We are very happy to continue to build our
relationship with Comerica Bank and Union Bank, which has resulted in significant business over the past several
years. They have been great partners, and continued to be through the course of this transaction. We are looking
forward to a strong continued relationship.”
Jesse A. Cohn, portfolio manager at Elliott Management, a large Relativity Media shareholder added, “We are
very pleased that Relativity was able to further optimize its capital structure by closing this Facility. As a
successful, growing business, Relativity knows how to best deploy its capital and we are very supportive of their
growth and well-established partnership.”
The deal was negotiated by Andrew Marcus (Chief Operating Officer), Ramon Wilson (EVP of Business
Development) and Greg Shamo (EVP of Corporate Affairs) on behalf of Relativity, Jared Underwood, Senior Vice
President, on behalf of Comerica Bank, and Senior Vice President Bryan LaCour and Vice President Brian
Stearns on behalf of Union Bank.
LaCour, Manager of Union Bank’s Entertainment Finance Group, said of the Facility, “Relativity is an important
Union Bank client. Concluding this transaction is significant in that it takes our relationship to the next level. We
look forward to continuing to grow our relationship with Relativity.”
"Comerica Bank is pleased to continue its relationship with Relativity in providing this credit facility in conjunction
with the company’s co-financing arrangement with Universal Studios,” said Underwood, Manager of Comerica