BREAKING: Media Rights Capital partners Modi Wiczyk and Asif Satchu have closed a five-year, $350 million revolving credit facility with funding provided by a group of banks led by JPMorgan Chase, Comerica, Bank of America, SunTrust and Union Bank. The syndicate includes East West Bank, Wells Fargo, Bank Leumi and City National Bank. The funds will be used to finance MRC’s feature and television productions. MRC’s last credit facility was also $350 million over three years, secured in 2008 in the midst of the economic downturn, from a consortium of banks that included JPMorgan Chase and Comerica.
MRC, which has enjoyed strong relationships with talents and the agencies, changed its feature structure from constructing pictures it licensed for distribution to studio, (it famously made a $42.5 million deal for Sacha Baron Cohen’s Borat follow-up Bruno with Universal for U.S. and English-speaking territories) to actually financing a lot of them through a five-year distribution deal with Universal Pictures. That studio has become a prime outlet for MRC fare, though it was District 9 distributor Sony Pictures that licensed the Neill Blomkamp-directed futuristic film Elysium, which stars Matt Damon, Jodie Foster and Sharlto Copley. It was the second MRC film for Damon, who starred with Emily Blunt in the Universal-distributed The Adjustment Bureau, which grossed $128 million worldwide. MRC is also in production on Ted, the feature directing debut of Family Guy creator Seth MacFarlane that stars Mark Wahlberg and Mila Kunis and will also be released by Universal. MRC has two more projects with Blomkamp and two with Fincher, among others. MRC makes the case-by-case decision whether the productions are licensed to studios or fall under its new distribution deal at Universal.
MRC, after a failed foray that involved programming the Sunday night lineup for the CW, is active on the small-screen front. MRC has The Ricky Gervais Show on HBO and is developing series that include the CBS sitcom How to Be a Gentleman with Entourage’s Kevin Dillon, and a serialized political drama for Netflix that is being produced by David Fincher and stars Kevin Spacey and Robin Wright. In all cases, MRC makes deals that grant talent at the ground floor an ownership stake in the film or TV project.
“In the unpredictable environment of the current economy, this oversubscribed facility is validation from our financial partners and allow us to continue growing and strengthening our brand,” said Erika Hindle, who joined at MRC as CFO over the summer after previous stints at Relativity Media and Overture.
Some of MRC’s recent features, from The Box to the M. Night Shyamalan-produced Devil and the Robert Rodriguez-directed Shorts, have fallen far short of box-office success. Still, David Shaheen, the Managing Director of JPMorgan Chase’s Entertainment Industries Group, said that MRC continues to be a profitable bet for the bank. “At a time when many financial institutions have rethought their support of entertainment properties, we continue to develop our partnership with Media Rights Capital,” he said in a statement. “MRC’s consistent profitability from project to project, whether in film or television, firmly cements our long-standing financial relationship with them. We are excited to be a part of the continued success of their business endeavors.”
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