Los Angeles, August 28, 2013 – Open Road Films and its lenders have agreed to extend the company’s $100,000,000 revolving credit facility for an additional five years through 2018. The new credit facility allows Open Road to reduce its borrowing costs and increase operating flexibility in light of the company’s excellent performance over its first two years as well as the strength of its owners – AMC Entertainment and Regal Entertainment Group.
All members of Open Road’s original lender group – Bank of America, Union Bank, OneWest Bank and Wells Fargo – renewed their commitments. Bank of America is the Administrative Agent and acted as the co-arranger of the facility with Union Bank.
Since its inception in 2011, Open Road has generated over $280 million at the U.S. box-office by acquiring and distributing star-driven hits and working with first-class filmmakers. Open Road has the ability to increase the size of the facility as its business grows.
Open Road CEO Tom Ortenberg stated, “In two years, Open Road has exceeded expectations and we are proud to have done this with the backing of Bank of America, Union Bank, OneWest Bank and Wells Fargo. Our parent companies, AMC Entertainment and Regal Entertainment Group, have been terrific partners and we greatly appreciate the support they have given us each and every day.”
“Bank of America Merrill Lynch, along with our banking partners, is thrilled to have had the privilege of working with Open Road since its inception and to provide growth capital to support continued success,” said Daniel Timmons, senior vice president and co-head of the Entertainment Industries group at Bank of America Merrill Lynch.
The deal was negotiated on behalf of Open Road Films by Ortenberg, Elliott Kleinberg, General Counsel and Executive Vice President of Operations and Business Affairs, and Steven Andriuzzo, Chief Financial Officer. Bank of America, Union Bank, OneWest Bank and Wells Fargo were represented by Susan Williams of Loeb and Loeb. Open Road was represented by Nancy Bruington of O’Melveny & Myers.
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.