Weinstein Company Secures $225M Credit Facilities with UBS, Union Bank (Exclusive) (Updated)

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The Weinstein Company has secured $225 million in financing for two new credit facilities with UBS and Union Bank

Updated 11:40 a.m. PST

The Weinstein Company has secured $225 million in financing for two new credit facilities with UBS and Union Bank, TheWrap has learned.

The facilities will allow the company to continue financing production and marketing for its upcoming slate of films rather than using its own cash, according to an individual close to the deal.

TWC announced the new credit facilities with a press release Thursday morning.

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“These facilities are a tremendous contribution to the continued production and acquisition of the kind of award-winning content The Weinstein Company is known for, as well as an important part of our long term growth strategy, anchoring our overall financial strength," COO David Glasser said in the statement Thursday. "We couldn’t ask for better partners in Union Bank and UBS, and we’re looking forward to growing our relationship with all of the banks involved."

A deal for a $150-million revolving facility was completed by Union Bank. An additional $75 million revolving new-media facility was put together by UBS Investment Bank.

The film company, which won this year's Best Picture Oscar for “The Artist,” is in production on Quentin Tarantino’s next movie, “Django Unchained,” which will be released in December. Weinstein also will release this year P.T. Anderson’s drama “The Master” and David O. Russell’s “Silver Linings Playbook.”

Also read: Weinstein Debt Wiped Clean in Deal with Goldman, Ambac

The financing from institutional lenders is a sign that Weinstein has come out of its period of restructuring and is on strong enough financial footing to attract relatively low-interest institutional credit.

The credit facilities, with an interest rate under 5 percent, will allow TWC to broaden its business interests into potential acquisition of film libraries or other related assets.

The company did not respond to TheWrap's request for official comment. TWC has five films slated for release in the remaining part of 2012, including the drama "Lawless" and the comedy "Bachelorette."

TWC announced the new credit facilities with a press release Thursday morning.

Here is the full press release:

NEW YORK – June 21, 2012 – The Weinstein Company (TWC) announced today that their Strategic Initiatives, Investments and Banking (SIIB) division has closed $225 million in new financings between two revolving multi-bank facilities. A $150 million domestic-focused revolving facility was closed and agented by Union Bank’s Bryan LaCour, Tony Beaudoin and Alex Cho. Also key to a successful closing were joint lead arrangers and joint book runners from CIT, Wade Layton and Kevin Khanna, and UBS Investment Bank. Union Bank will serve as Collateral Administrator for this facility. An additional $75 million revolving new media facility was structured and agented by UBS Investment Bank. OneWest Bank will serve as Collateral Administrator for this UBS Facility, led by Joe Woolf. The announcement was made today by TWC COO David Glasser.

These two facilities will play an instrumental role in continuing TWC’s transformation as a minimajor film studio now largely supported by institutional financing. Originated by leaders in the financial communities on both coasts, this capacity will allow for TWC to act on opportunities worldwide as they become available. 

“These facilities are a tremendous contribution to the continued production and acquisition of the kind of award-winning content The Weinstein Company is known for, as well as an important part of our long term growth strategy, anchoring our overall financial strength. We couldn’t ask for better partners in Union Bank and UBS, and we’re looking forward to growing our relationship with all of the banks involved,” said Glasser. 

Added TWC EVP of Strategic Initiatives, Investments and Banking David Hutkin, “I am very happy that we are in business with two strong financial partners in Union Bank and UBS Investment Bank. These innovative structured financing vehicles will help TWC continue to expand in all areas including content creation and acquisition and synergy-led asset and corporate targets.” 

Said SVP, Manager of Union Bank Bryan LaCour, “Union Bank is proud to continue to build our relationship with TWC through the TWC Domestic facility. The support provided by TWC Domestic lenders evidences, amongst other things, the comfort provided by TWC’s strengthened domestic distribution network.” “UBS is thrilled to be part of this innovative transaction with The Weinstein Company,” said 

Jonathan Koen, an Executive Director at UBS Investment Bank, while CB Mulhern, Managing Director in the Private Finance Group of UBS Investment Bank went on to say, “UBS was pleased to provide to TWC a creative solution for monetizing its new media cash flows.”

Supporting the company in this effort was the Strategic Initiatives, Investments and Banking division led by Hutkin, his VP team leader Vivian Tarn and Director Erin Shipley. Also instrumental in closing these transactions were TWC CFO Andy Kim and EVP of Accounting Irwin Reiter. 

Also aiding in the closings were the L.A. Office of O'Melveny & Myers on behalf of TWC and the Chicago office of Sidley Austin representing the agent groups on the bank facilities.