New Deal Sets the Stage for the Weinstein Company
After recent financial struggles, the Weinstein Company, makers of Oscar-winning film "The Artist," just announced $225 million in new financing.
The company, which calls itself the "mini-major film studio", said Thursday that it secured two revolving lines of credit: $150 million from Union Bank, and $75 million from UBS Investment Bank, The Wall Street Journal reports. The facilities will reportedly allow the company to finance its busy production period planned for the fall, and may also be used for the purchase of assets, including film libraries.
"These two partners stepped up, knowing everything that had gone on, and trusted the current management," Weinstein’s vice president of strategic initiatives, investments, and banking told the Journal.
This deal marks some relief for the company, which has a troubled financial history. In 2009, it failed to pay back a $75 million bridge loan from Ziff Brothers Investments, and in 2010, it agreed to major debt restructuring that gave Goldman Sachs and an insurer possession of more than 200 of its films, reports the paper.
Previously, the Weinstein Company founding team, brothers Harvey and Bob Weinstein, started Miramax Films in 1979. Disney bought Miramax in 1993 for $80 million, but the brothers continued to operate it until 2005, when they left the notoriously-tumultuous relationship with Disney to start the Weinstein Company, according to The New York Times.