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The Rosewood Court Building

2101 Cedar Springs Rd. Ste. 1050 

Dallas, Texas 75201

USA

 

o: 1.877.827.2559

f: 1.469.444.5013

 

AccountExecutive@VicsarGlobal.com

© 2019 by Vicsar Global Finance LLC

FILM & TV

While Motion Picture production is thought of as being especially risky, there are ways of hedging this risk.  The Arranging Source that offers this financing program arranges a successfully-hedged investment that presents the possibility of high-level returns, while at the same time minimizing down-side risk.

Locations Available : 

 

Funding Amount : 

 

Eligible Projects :  

Interest Rate : 

 

Terms : 

Pre-Financing Costs : 

 

Closing Costs: 

 

Collateral: 

 

Equity Ownership: 

 

 

Advantages:  

Worldwide

 

$1 Million USD to $36 Million USD 

Motion Picture Productions

Television Productions

 

Prime + no more than 4%

Film cannot contain excessive sex or violence.

Approximately 3% in underwritting

Typically 2% is out-of-pocket for the borrower

 

Producer Equity Commitment:  20% against total project costs

 

100% of the Principal Amount must be backed by bankable pre-sales, cash, Letters of Credit, and government incentives and rebates

 

60% - Producer or nominee

40% - Arranger 

 

  • Borrower maintains 60% of the project

  • Production Loan will be made available for a period of up to 24 months from date of first drawdown

  • Principal Loan amount will mature and become due in its entirety within 36-60 months from date of first advance of funds

FREQUENTLY ASKED QUESTIONS

 

What is the expected role of all parties involved?  

 

Producer :  Shall be solely responsible for all production services traditionally associated with the development, pre-production, etc.

Arranger :  Shall arrange and facilitate the full financing of the project.

Lender :  A bank to be determined by the Arranger.

Borrower :  Arranger shall create a new single purpose vehicle (i.e., an LLC, LPC, etc.) designed exclusively for the purpose of borrowing funds from the Lender to fund the project.

 

How does the Collateral work?  

 

A Single Purpose Vehicle is created and shall be secured and backed approximately as follows:

 

  1. Bankable Presale: 15%: Producer shall secure a bankable presale agreement with a sales agent or distributor.

  2. Bridge Presale Commitment: 15%: Pending income to be generated from product placement/other, the Producer shall collaterize 15% which shall comprise a holdback of partial fees payable to Producer, Writer, Director, Service Providers and/or other budgeted items back by two major territories or a combination of smaller territories.

  3. Arranger Gap: 15%: Arranger shall provide collateral in the form of cash, a line of credit or other form of bankable guarantee.

  4. Tax Incentives: 25%: Producer shall provide a commitment of 25% representing the discounted value of Tax credits, Rebates and Grants.

  5. Arranger Commitment: 10%: Arranger shall provide collateral in the form of cash, a line of credit or other bankable guarantee.

  6. Producer Equity Commitment: 20% Producer shall provide cash or cash equivalent guaranteeing the Borrower's payment of its obligation to the Lender.