Alcon Entertainment is extending its output distribution agreement with Warner Bros. through 2019 and has arranged for $200 million in new funds.
The company — which produced “The Blind Side,” “P.S., I Love You,” “The Sisterhood of the Traveling Pants” and “The 33” and the upcoming “Point Break” — raised the $200 million in a senior secured credit facility via a structured finance transaction involving a bank syndicate led by JP Morgan Chase, CIT Bank and Bank of America.
Alcon’s distribution partnership with Warner Bros. began in 1998, the year after Alcon was founded. The agreement has been extended five times.
Under the new pact, Warner Bros. will release a minimum of 10 new films from Alcon Entertainment. Alcon has the option to distribute its pictures internationally through Warner Bros., but also has the flexibility instead to pre-sell rights through its long-standing partner Lionsgate Intl.
Alcon co-toppers Broderick Johnson and Andrew Kosove stated, “The distribution extension and new financing will assist Alcon in maximizing liquidity, and allow us to maintain our focus on producing and marketing our films. We value tremendously our close, ongoing relationship with Warner Bros., and we’re thrilled that it will continue.”
“Andrew, Broderick and Alcon have been great partners to Warner Bros. for the last 15 years,” said Kevin Tsujihara, Chairman and CEO of Warner Bros. “Their films are always great additions to our slate, and I’m very glad they’ll continue to be a part of the Warner Bros. family for years to come.”
Alcon is in pre-production on a sequel to “Blade Runner” with Ryan Gosling in negotiations to star with Harrison Ford. Denis Villeneuve is directing, Ridley Scott is executive producing.