CANNES– After announcing a joint distribution venture with Relativity Media earlier this year, EuropaCorp has now inked with J.P. Morgan, SunTrust Bank and OneWest Bank to secure a new $450 million credit facility, plus a $100 million accordion.
Deal gives EuropaCorp five years to refinance the existing credit facility of 105 million Euros.
The new credit facility will bolster EuropaCorp’s growth strategy and gives it the means to expand into the U.S. market via RED (Relativity EuropaCorp Distribution), its U.S. distribution venture jointly launched with Ryan Kavanaugh’s Relativity Media.
EuropaCorp will use the credit line to finance its slate of English language movies, as well as fund marketing and distribution costs related to this new production.
“This new credit facility illustrates the increased confidence in EuropaCorp’s credit quality and financial solidity. It is a major success, as it increases significantly EuropaCorp’s capacities to produce and distribute a wider range of films,” said Christophe Lambert, CEO of EuropaCorp. “After the creation of Relativity EuropaCorp Distribution USA earlier this year that allowed us to fully control our distribution in the U.S. and maximize the visibility for our films, this facility finances our strategy for the next five years.”
David Shaheen, J.P. Morgan’s managing director and head of the entertainment Industries Group, said “We are excited to partner with EuropaCorp and help fund this increasingly global and important player in the entertainment industry. EuropaCorp’s management team has demonstrated a true commitment to high caliber film production, and we are fortunate to be a part of their significant expansion into the U.S. market.”
In a recent interview with Variety, Lambert said he was looking to produce around eight English-language films per year and will distribute them in the U.S. via RED.
In Cannes, EuropaCorp has Bertrand Bonello’s “Saint Laurent” and Tommy Lee Jones’ “The Homesman” playing in official selection. Its English-language slate include “The Lake,” an epic thriller written by Richard Wenk ‘“The Expendables 2″), Louis Leterrier’s (“Now You See Me”) “Sea At War,” co-penned by Luc Besson, as well as Camille Delamare’s “The New Transporter” and Simon West’s “DNA.”