Relativity Media has closed $350 million round of debt financing. The substantial cash infusion will fund its planned expansion as well as its future film projects.
The deal includes at least a dozen of the most reputable banks and institutional lenders in the industry. This is the first time that the company has raised secured corporate debt as it grows its expanding base of lending relationships.
With output partnerships covering over 110 territories, an already formidable and growing film library, one of the most substantial independent suppliers of reality television (70 projects in production, including 21 original series that are currently airing or will air in the upcoming television season), one of the strongest independent sports agencies, the seventh largest music and film digital network and multi-year branding agreements, the company’s robust asset base has allowed for it to take on debt in order to grow the business.
“This marks a significant step forward for Relativity and firmly positions us for exciting new endeavors. We are thankful to our passionate partners for all of their efforts and support,” said Relativity’s CEO Ryan Kavanaugh.
Colbeck Capital advised the company, structured the deal and is a significant participant in the overall transaction.
“We have had a chance to work closely with Relativity and Ryan over the past six months and we are incredibly excited about the business, the quality of its assets and long term growth prospects,” said Colbeck Capital partners Jason Colodne and Jason Beckman.
Ron Burkle continues to be a significant equity holder in the company and an anchor investor in the deal through his relationship with Colbeck.
“We have been actively involved with and considered acquiring many film studios during the past few years. We’re always looking for good investment ideas, which are very hard to find in Hollywood and we believe we’ve made one with Ryan. After doing in-depth analysis of Relativity, we determined it is one of the most well positioned, unique studios poised for growth and structured for today’s unique content environment. We are proud to be in business with Relativity and will support them as they achieve new milestones,” said Burkle.
As part of this deal, a new board of directors, which is majority controlled by company CEO Kavanaugh, was created. The board includes Burkle alongside Colbeck partners Beckman and Colodne, amongst others.