New Regency on Tuesday extended the terms of its credit facility led by J.P. Morgan for another five years, founder Arnon Milchan and CEO Yariv Milchan said.
The extension includes a $700 million revolving credit and is also backed by Bank of America, Union Bank, Sun Trust and several other banks in addition to J.P. Morgan.
Along with that extension, New Regency has also closed a five and a half year, $125 million term loan from The Carlyle Group.
J.P. Morgan, which has arranged financings for New Regency for decades, served as sole bookrunner, administrative agent and co-lead arranger on the term loan alongside Carlyle’s Direct Lending platform, which is part of Carlyle’s Global Credit division. Closing both deals bolsters New Regency for an additional five years, arming it with $825 million.
“We’re looking forward to continuing our relationship with J.P. Morgan and to begin this new partnership with The Carlyle Group,” Milchan said in a statement. “Carlyle’s unique combination of deep knowledge of the film industry, flexible capital and ability to tailor a solution to meet the specific needs of our business makes them an ideal partner. This arrangement will position New Regency to continue to grow and produce high-quality, creative-driven content for audiences worldwide.”
The capital infusion comes in the midst of a global health and economic crisis where most all Hollywood companies have sought ways to buoy their business and better position themselves post pandemic.
New Regency touts a film library with robust value and these transactions provide new capital for the company to continue to produce content. New Regency has an established relationship with Disney, which currently distributes its films worldwide through 20th Century Studios.
New Regency’s upcoming slate includes Adrian Lyne’s “Deep Water,” starring Ben Affleck and Ana de Armas; “Everybody’s Talking About Jamie,” a film adaptation of the acclaimed musical starring Richard E. Grant, Sharon Horgan, Sarah Lancashire and newcomer Max Harwood. The studio also has an untitled original film from David O. Russell starring Christian Bale, Michael B. Jordan and Margot Robbie, as well as Robert Eggers’ “The Northman,” starring Alexander Skarsgård, Nicole Kidman and Willem Dafoe.
“We are excited to partner with New Regency and J.P. Morgan,” Jonathan Pearl, managing director of Carlyle Direct Lending said in a statement. “New Regency has built a unique library of independently produced films by consistently delivering critically acclaimed box office hits over the course of its long track record of success. We look forward to supporting the company’s continued growth, particularly during this unprecedented period of economic and market volatility.”
The Carlyle Group is a global investment firm with $217 billion of assets under management. The firm deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. The Carlyle Group’s Direct Lending platform has approximately $5 billion of assets under management, and is focused on investing in the middle market across the capital structure.
“We are thrilled to work with The Carlyle Group to help our longstanding client, New Regency, continue to innovate and thrive,” said David Shaheen, head of Entertainment Industries and West Region for J.P. Morgan’s Corporate Client Banking and Specialized Industries business, in a statement.
New Regency recently launched New Regency Television International, a division charged with producing TV content for the international marketplace based out of London. The division is focused on developing and producing high-end, authored and distinctive scripted content for the international marketplace.
New Regency also has an international sales team primarily based out of London which handles international licensing activities for the company’s library of films and television shows.