CANNES — Guy East and Nigel Sinclair’s Intermedia Films has secured $300 million in production financing under two separate facilities from Chase Securities and Societe Generale.
The twin deals will enable Intermedia to greenlight its own movies up to $30 million for the first time, and to co-venture with Hollywood studios on pics up to $75 million.
The company will also be able to take a longer-term strategic view of its international distribution arrangements.
Intermedia has negotiated a $150 million debt facility with Chase to co-finance films with budgets of more than $30 million, topping out at around $75 million.
The company expects to be involved with two or three films a year in this range, partnering with major U.S. distribs.
The $150 million facility from French bank SocGen, backed in part by CE Heath Insurance, will be used to greenlight Intermedia films of less than $30 million. The company will still seek to cement a U.S. distribution deal for any projects of more than $10 million, but that is not a prerequisite to trigger the SocGen financing.
The two deals were negotiated with John Miller at Chase and Premilla Hoon at SocGen. Roger Bassett at CE Heath put together the insurance underpinning of the SocGen deal, with Sun Alliance as the lead insurer. Finance director Andy Mayson and finance exec Matthew Paine negotiated the deal for Intermedia.
Chase’s Miller said, “We are impressed with Intermedia’s achievements to date and delighted to be in a position to provide funding to enable the company to continue to achieve its objectives.”
Sinclair commented: “Our approach has always been to foster and maintain close relationships with leading producers to develop and deliver first-class films. This financing is a key component of this strategy, and will enable Intermedia to move to a new level.”
Upcoming projects likely to be financed under these new arrangements include Outlaw’s “Mindhunters” and “National Security”; “Mount Weather” from Sean Connery’s Fountainbridge shingle, and the Brad Pitt vehicle “The Courier.”
Intermedia will also have more elbow room to plan its distribution strategy, instead of being forced to close deals simply to meet the short-term demands of single-project financing. That may, for example, mean selling theatrical and video rights, but holding back TV rights in a lucrative TV territory such as Italy, so that Intermedia can broker its own TV deals.