Company to earmark cash for Beverly 2 subsidiary
The company will earmark the coin for its Beverly 2 subsidiary, which co-finances Universal Pictures films as part of a massive slate financing deal. Relativity forged a partnership with the studio four years ago and is now co-financing approximately 75% of Universal’s slate through 2015.
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 credit facility to fund new films that are part of the deal between Relativity and Universal.
“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,” said Relativity CEO Ryan Kavanaugh. Jesse A. Cohn, portfolio manager at Relativity shareholder Elliott Management, added: “Relativity knows how to best deploy its capital, and we are very supportive of their growth and well-established partnership.”