A Private Equity Financial Firm provides Film and TV production financing. This investor group will structure financing for Film, Theatre and TV Production starting at $1 Million and up.
The Producers should provide cash equity in the amount of 20% reserve over and above the total budget. The producers should also demonstrate that the proposed screen play plus talent can support sufficient pre-sales.
Production and Budget
The producers shall prepare the production budget for the actual cost of production for the picture approval by the arranger. The budget shall include all actual and verifiable third party production cost, fees and expenses of the picture, including but not limited to production and errors and omissions, insurance completion bond fee and reasonable professional and legal fees.
Distribution of Funds
The distribution of funds to the producers is pursuant to a mutually agreed upon cash flow schedule consistent with the final approval of the budget. The first draw down of funds will commence when the arrangers determine that all funding conditions precedent have been satisfied.
(DSRF) A Debt Service Reserve Fund should be establish and maintained upon delivery of the Film
Financing Conditions and Terms
The following financing conditions and terms are included in the structured financing
– Distribution Agreement
– Foreign Pre-sale plus Bridge
– Total production Budget
– Break even Point
The ownership of the production is an equity partnership between the Arrangers (Equity Group) and the Producers with the following distribution
– 40% Arrangers
– 60% Producer
The film should be secured and backed by the bankable guarantees as follows
Bankable Pre-sale 15%: Producer and Arranger in agreement will secure a bankable pre-sale agreement
Bridge Pre-sale 15% : Pending Completion income and pre-sales generated in coordination with Producer and Arranger payable to Writer, Director
Tax Incentive 25%: Producer in Cooperation with the Arranger
Completion Bond Guarantor: Any outstanding amount owed to the completion bond guarantor of the film including transaction cost and fees