Credit facility extended to 2018
Touting its performance at the box office, Open Road Films has announced that its lenders have agreed to extend the company’s $100 million revolving credit facility for five years through 2018.
Open Road said its films have generated over $280 million at the U.S. box office since its inception in 2011, with Liam Neeson’s “The Grey” taking in $51 million last year and Jake Gyllenhaal’s “End of Watch” with $41 million. Recent titles include “Jobs,” “The Host,” “Side Effects” and “Haunted House,” which took in $40 million.
The distributor said the new credit facility will reduce its borrowing costs and increase operating flexibility, adding that the extension reflects the strength of its owners – AMC Entertainment and Regal Entertainment Group.
Under the extensions, the four members of the the original lender group – Bank of America, Union Bank, OneWest Bank and Wells Fargo – have renewed their commitments. Bank of America is the administrative agent and acted as the co-arranger of the facility with Union Bank.
The deal was negotiated on behalf of Open Road Films by Tom Ortenberg, Elliott Kleinberg and Steven Andriuzzo. Bank of America, Union Bank, OneWest Bank and Wells Fargo were represented by Susan Williams of Loeb and Loeb. Open Road was represented by Nancy Bruington of O’Melveny & Myers.