Amidst the highly publicized credit crunch, Entertainment One has obtained a four-year, $150 million revolving credit facility from a consortium of banks led by JP Morgan.
Participating banks also include Bank of America, Barclays and Toronto Dominion Bank. The deal has been in the works for months.
“This new facility is another key element of the company’s strong balance sheet, supporting our strategy to build the world’s leading independent international film, television and music business,” Darren Throop, CEO of E1, said in a statement. “The Company now has additional capital to pursue further opportunities for additional growth in our core markets.
David Shaheen, managing director of JP Morgan said, “Securing this facility in the current market is a significant achievement for E1, and is testament to the success of the business and the belief in the company’s ability to achieve its ambitions.”
As part of the financing, E1 has commissioned an independent third party report that has valued its film and music library — which currently includes over 3,700 film titles and approximately 15,000 music tracks — in excess of $175 million.
