Relativity Media has completed its negotiations to raise $350 million, a total that includes $100 million to pay down some of its existing debt, according to multiple sources with knowledge of the transaction.
The haul is an increase increase from the $200 million that Ryan Kavanaugh’s mini-major set out to raise this spring through boutique capital firm MESA Global. Thursday’s deal gives Relativity at least $250 million to fund expansion plans and puts more coin in the coffers for future films (Daily Variety, May 30).
Relativity’s minority stakeholder Ron Burkle anchored the deal with $75 million through the Colbeck Capital fund, in which he is a major investor. As part of the transaction, Relativity announced the creation of a new board of directors, which will include Burkle and Colbeck partners Jason Beckman and Jason Colodne.
“We have had a chance to work closely with Relativity and Ryan over the past six months and we are incredibly excited about the business, the quality of its assets and long-term growth prospects,” Colodne and Beckman said jointly in a release announcing the deal.
Closing of the deal quiets skeptics who doubted Relativity had the assets to make such a major capital raise. Those assets include about $60 million in receivables from “Act of Valor” and “Mirror Mirror,” about 50 Relativity-produced titles and TV division RelativityReal.