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.

CONTACT US

 

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

© 2020 by Vicsar Global Finance LLC