Legendary Entertainment In Talks With Bank Of America Corp (NYSE:BAC) And JPMorgan Chase & Co. (NYSE:JPM) To Seek Approx $700 Million

An autonomous studio of the Hollywood films, Legendary Entertainment (which also backed the Jurassic World). Is in negotiation with the Bank of America Corp (NYSE:BAC) and JPMorgan Chase & Co. (NYSE:JPM) to borrow approximately $700 million. The finance will be used in the making of films.

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Strong demand may push the amount

Thomas Tull, the film producer is the premier of Legendary Entertainment studio and he started to seek such a whooping amount in order to replace the credit facility worth $600 million, which is also led by these two banks. The credit facility will mature in 2016. In an interview with Bloomberg, a few people having knowledge of this matter, said that due to robust demand, the amount of loan may also increase to $700 million.

Legendary’s Big Studios and Massive Sets

In October 2014, the studio had raised an equity amount of $250 million, sourced from Softbank Corp (USA) (OTCMKTS:SFTBF). The studio has also worked on some great blockbusters, including The Dark Knight, along with Time Warner Inc (NYSE:TWX)’s Warner Bros. Entertainment Inc. In the year 2013, the owner Thomas Tull parted ways and spread itself in the television industry. He has played some huge gamble on his self-productions like Godzilla and Pacific Rim. Jurassic World is a sequel to Steven Spielberg 1993 film and this is scheduled to be released in June 2015. Legendary will release the film along with Universal Pictures of Comcast Corporation (NASDAQ:CMCSA).

The two releases of the studio so far, i.e., Blackhat and Seventh Son have proved to be huge regret at the box office.

The growing interest of investors in entertainment industry

Legendary is minting advantage on the increasing interest of investors in entertainment industry. These investors are trying to capitulate in the environment where loans are available at low rate. A few years ago, due to the credit crisis, a range of banks had retreated from this particular market.

About the Author

Laurie, a long-time member of the US Markets Daily general assignment reporter who has covered a variety of subjects from breaking news to investigative features, from stock markets to politics, and from neighborhood small business to global warming.

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