Friday, 18 November 2011

Miramax Plans $142 Million Dividend for Investors with Refinancing

Reliable sources have revealed that Miramax, a producer of films, is planning to pay about $142 million as dividend to its investors. It will raise about $550 million to pay the dividends and to refinance debt that had been taken when the studio was bought from Walt Disney Co. by Colony and investor Ron Tutor for $660 million in December.
The owners will be able to reclaim some cash and will also be able to finance more debt at lower interest rates with the help of the asset-backed bond being offered by Miramax Film NY LLC. In May, Chief Executive Officer Mike Lang had said that since the time of the purchase, deals have been signed by the company with Netflix and Hulu for online distribution of films, and with others, to ensure profitability.
More than $100 million of the capital of the investors will still be retained by them. Standard & Poor’s said that Miramax’s library of more than 700 films and14 television serials will back the securities. Rights of more than 240 books and 300 development projects are also held by the company, as reported by S&P.
The sale is being managed by Barclays Capital and Jefferies Group Inc.

Read More : Miramax Plans $142 Million Dividend for Investors with Refinancing

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