Despite a global credit squeeze, Canada’s Entertainment One has just received a four-year $150 million senior credit facility with a group of financial institutions led by JP Morgan. The facility leaves the Toronto-based distrib and producer poised for further growth. The other banks in the syndicate include Bank of America, Barclays and Toronto Dominion Bank.
Entertainment One CEO Darren Throop said he was particularly happy to clinch the deal given the disastrous conditions in financial markets right now.
“We’re obviously thrilled to get this facility locked down in these markets,” said Throop. “I think it’s a strong endorsement of our strategy.
Added David Shaheen, managing director of JP Morgan: “Securing this facility in the current market is a significant achievement for E1, and is testament to the success of the business.”
Throop also said Entertainment One is considering listing itself on the Toronto Stock Exchange and the London Stock Exchange, but the final decision has yet to be made. He admitted the current market conditions were making the decision more difficult.
Entertainment One announced at the same time that it had an independent third-party report on the value of its film and music library, which is set at more than $175 million. Library includes 3,700 film titles and about 15,000 music tracks.
Entertainment One has been listed on the AIM market in the U.K. since March, 2007, and has been on a spending spree in the past year. It has acquired numerous companies, including Contender in the U.K., Seville Pictures in Canada, RCV in Holland and Belgium, and, more recently, the Canuck companies Blueprint Entertainment, Barna-Alper Prods., Maximum Films and Oasis Pictures.