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Paramount and Dresdner Kleinwort Announce $300 Million Film Financing Arrangement

Strategic Insights

— 1 min read

The Paramount Motion Picture Group, a unit of Viacom, has partnered with Dresdner Kleinwort to create a $300 million film financing arrangement, named Melrose Investors 2 LLC (Melrose 2). The fund will invest in the production of at least 30 films, including releases from Paramount Pictures, DreamWorks SKG, MTV Films, and Nick Movies. Melrose 2 is the follow-up to the 2004 Melrose Investors LLC fund, which invested $225 million in 25 PMPG releases.

Key Takeaways:

  • The Melrose Investors 2 LLC (Melrose 2) fund will invest $300 million in the production of at least 30 films, including releases from Paramount Pictures, DreamWorks SKG, MTV Films, and Nick Movies.
  • The fund is a follow-up to the 2004 Melrose Investors LLC fund, which invested $225 million in 25 PMPG releases, starting with the movie "MEAN GIRLS".
  • The successful closing of Melrose 2 demonstrates a strong investor appetite for the film sector, as well as Paramount's appeal to the investor community.
  • The arrangement has also funded films from the 2006 PMPG slate, including "JACKASS: NUMBER TWO," "WORLD TRADE CENTER," and "NACHO LIBRE".
  • Paramount engaged Dresdner Kleinwort to advise on the development of the co-financing structure and arranged its funding.
  • The $300 million fund will be invested in films to be released in 2007, including "FREEDOM WRITERS," "NORBIT," "SHOOTER," and "THE SPIDERWICK CHRONICLES".

Statistics:

  • $300 million: The total amount invested in the Melrose Investors 2 LLC (Melrose 2) fund.
  • 30: The minimum number of films to be produced with the funds from Melrose 2.
  • $225 million: The total amount invested in the 2004 Melrose Investors LLC fund.
  • 25: The number of PMPG releases funded by the 2004 Melrose Investors LLC fund.
  • 2007: The year in which the films funded under the deal are scheduled to be released.
  • 2006: The year in which the films "JACKASS: NUMBER TWO," "WORLD TRADE CENTER," and "NACHO LIBRE" were released.

Sources:

  • PRNewswire, Oct. 2, 2006, "Paramount and Dresdner Kleinwort Announce $300 Million Film Financing Arrangement"
  • Paramount Pictures Corporation
  • Dresdner Kleinwort

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