The first agreement extends the term of its credit facility led by J.P. Morgan for an additional five years backed by Bank of America, Union Bank, SunTrust and several others for a revolving facility of up to $700 million.
The prolific producer also closed a new five-and-a-half year, $125-million term loan from Carlyle Group, working with the giant private equity firm’s Direct Lending platform for the first time. Direct Lending, with circa $5 billion in assets under management, is part of Carlyle’s Global Credit division and served as co-lead arranger. J.P. Morgan, New Regency’s lead bank for decades, is sole bookrunner, co-lead arranger and administrative agent.
The transactions provides fresh cash for New Regency to continue to produce differentiated content, it said, noting that its film library “continues to maintain robust value despite the current global health crisis.”
New Regency distributes its films worldwide through Walt Disney’s 20th Century Studios. Its upcoming slate includes Adrian Lyne’s Deep Water, Everybody’s Talking About Jamie, a film adaptation of the musical, an untitled original film from David O. Russell starring Christian Bale, Michael B. Jordan and Margot Robbie and Robert Eggers’ The Northman with Alexander Skarsgård, Nicole Kidman and Willem Dafoe.
Its London-based TV division develops scripted content for the international marketplace and its sales team handles global licensing activities for the company’s library of films and television shows.
“We’re looking forward to continuing our relationship with J.P. Morgan and to begin this new partnership with The Carlyle Group,” said Milchan. “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.”
Jonathan Pearl, Managing Director of Carlyle Direct Lending, praised New Regency’s “unique library of independently produced films” and successful track record. “We look forward to supporting the company’s continued growth, particularly during this unprecedented period of economic and market volatility.“
“We are thrilled to work with The Carlyle Group to help our longstanding client, New Regency, continue to innovate and thrive,” added David Shaheen, Head of Entertainment Industries and West Region for J.P. Morgan’s Corporate Client Banking and Specialized Industries business.