Here’s one measure of A24’s recent success: With new help from Bank of America, J.P. Morgan and SunTrust, the studio just raised its line of credit to $125 million, from the $50 million it arranged in 2014.
The banks joined the amended corporate credit facility that Comerica Bank structured with Union Bank serving as syndication agent.
A24 says it will use the cash to “build upon its core film-distribution business, as well as to expand its film development/production and television businesses.”
The announcement comes as A24 waits to see how it will fare at the Academy Awards, where it has seven nominations. Room is up for Best Picture, Best Actress, Best Directing and Best Adapted Screenplay; Ex Machina is a candidate for Best Original Screenplay and Best Visual Effects; and Amy was nominated for Best Documentary Feature.
The studio’s Matthew Bires says that the three banks’ decision to offer credit “represents a tremendous vote of confidence in our business model and real validation of the work our team has done over the last four years. ”
Todd Steiner of Comerica’s Entertainment Group says it was able to win the additional support due to the studio’s “great success to date.”
Irell & Manella’s Joshua Grode and Paul Swanson advised A24, and Akin Gump’s Alissa Miller represented Comerica.