Relativity Closes $350 Million in Company Funding

Relativity Media announced today that it 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.

MESA Global advised on the capital raised.

Looking ahead, Relativity has a dozen films prepping for release, including edge-of-your-seat thriller House at the End of the Street (in theatres September 21, 2012), hilarious comedy 21 and Over (in theatres November 2, 2012), the Untitled Farrelly-Wessler Comedy (in theatres January 25, 2013) and thriller Paranoia (in theatres September 27, 2013). Relativity is currently in production on Scott Cooper’s gritty dramatic thriller Out of the Furnace , in pre-production on the film adaptation of Nicholas Sparks’ best-selling novel Safe Haven (in theatres February 8, 2013) and EuroCorp’s Malavita starring Robert DeNiro and directed by Luc Besson. RelativityREAL, the company’s TV division, is debuting Miss Advised on Bravo next month in addition to shows Police Women on TLC, Coming Home on Lifetime and The Great Food Truck Race on Food Network.

ABOUT RELATIVITY MEDIA, LLC

Relativity Media is a next-generation studio engaged in multiple aspects of entertainment, including full-scale film and television production and distribution, the co-financing of major studio film slates, music publishing, sports management and digital media. Additionally, the company makes strategic partnerships with, and investments in, media and entertainment-related companies and assets.

To date, Relativity has produced, distributed, and/or structured financing for more than 200 motion pictures. Released films have accumulated more than $17 billion in worldwide box office receipts. Relativity’s recent films include: The Raven, Mirror Mirror, Act of Valor, Haywire, Immortals, Tower Heist, Bridesmaids, Limitless, Hop, Cowboys & Aliens, Battle: Los Angeles, Little Fockers, The Fighter, The Social Network, Salt , Despicable Me, Grown Ups, Dear John , It’s Complicated , Couples Retreat and Zombieland . Upcoming films for Relativity include: The Bourne Legacy, House at the End of the Street and 21 and Over . Thirty-nine of the company’s films have opened to No. 1 at the box office. Relativity films have earned 60 Oscar® nominations, including nods for The Fighter, The Social Network, The Wolfman, A Serious Man , Frost/Nixon , Atonement , American Gangster and 3:10 to Yuma. Sixty-two of Relativity’s films have each generated more than $100 million in worldwide box-office receipts.

RelativityREAL, Relativity’s television arm, has nearly 70 projects in production, including 21 original series that are currently airing or will air in the upcoming television season including Police Women for TLC, Coming Home for Lifetime and The Great Food Truck Race for Food Network. Relativity also owns and operates RogueLife, Relativity’s digital content studio is developing original content for the web and creating sustainable online platforms and communities. Relativity Music Group, a music division of Relativity, provides music supervision, music publishing catalogues and soundtrack services for films produced and/or distributed by Relativity Media and other major Hollywood studios. Relativity Sports is a fast-growing sports management company dedicated to providing high-profile athletes with a full-range of professional development services. For additional information, please visit www.relativitymedia.com .

Contact:

Relativity Media
Adam Keen, 310-724-7720
Greg Longstreet, 310-724-7738