Village Roadshow Entertainment Group has completed a $480 million recapitalization — including $325 million of new capital from a consortium of worldwide investors — keying a renewal of its $750 million film production facility that finances VRP’s library of 85 titles co-produced with Warner Bros, Sony Pictures and other distributors.
Village Roadshow co-financed and produced seven films in 2014 and 2015 and was looking to expand on that number with a new deal. It previously brought in new capital in 2012 when it struck a debt and equity deal for $275 million with Trinity Opportunities Limited.
The new recapitalization now includes $325 million of new capital from a consortium of worldwide investors (including Vine Alternative Investments, Falcon Investment Advisors, and Village Roadshow Limited). The facility was arranged by VREG and placed by J.P. Morgan Securities LLC, with Moelis & Company acting as financial adviser. The facility was done in conjunction with Village’s joint syndication agents Rabobank International and J.P. Morgan Securities.
“This funding demonstrates the underlying strength of Village Roadshow Pictures and its longevity in the industry,” said Graham Burke, VREG chairman and co-chairman & co-CEO of Village Roadshow Limited. “With this new phase, we are thrilled to be moving towards our third decade of filmmaking in partnership with Warner Bros. and the start of our journey with Sony,” said Greg Basser, CEO of Village Roadshow Entertainment Group. “This capital will strengthen VREG’s financial resources and our capacity to make more films.”
Village Roadshow Pictures’ library has generated more than $15 billion in global box office receipts. Still to come in 2015 under the
partnerships: Sony’s Goosebumps starring Jack Black, In The Heart Of The Sea starring Chris Hemsworth and directed by Ron Howard, and Concussion starring Will Smith and directed by Peter Landesman. The 2016 slate includes the Sacha Baron Cohen starrer Grimsby, Tarzan starring Alexander Skarsgard, the female Ghostbusters, Guy Ritchie’s King Arthur, The Magnificent Seven and Passengers starring Jennifer Lawrence and Chris Pratt. The initial 2017 titles include The Equalizer 2 starring Denzel Washington and Steven Spielberg’s Ready Player One.