Check Out Our New Look

Summit Starts To Refinance Looking To Raise $800M; Moody’s Assigns B1 Rating

The Moody’s rating came out today, generated as part of the process of Summit Entertainment refinancing its credit facilities. “Due to the company’s success over the last four years, Summit expects to substantially improve its credit terms. The company remains fully capitalized and will continue to execute its business plan,” an insider tells me. Based on this process, Summit is also expecting a rating from the S&P most likely later today. Summit intends to use the $800M to repay existing debt, finance production, and pay a distribution to shareholders. My sources say it does not look as if the money will be used towards acquisitions, at least at this point in time. Such an incredible story how this Santa Monica-based upstart independent studio which began in 2007 is now worth so much on the backs of those Twilight Saga movies. But that franchise also affected the Moody’s credit rating as both good/bad news. Here’s why: ”The stable outlook reflects a balance between an expectation of strong cash flow from the Twilight franchise and consequent debt reduction over the next few years, and an increase in risk over time with greater dependence on new film production which is not sequel-based… Nevertheless, we remain cautious about the sustainability of strong credit metrics beyond 2013, given the end of the Twilight franchise, uncertainty about a replacement franchise, and the volatile nature of the company’s business.”

Here’s the Moody’s rating info:

Rating Action: Moody’s Assigns B1 rating

Read More »

Comments (8)

Mike Sitrick, Shame On You…

By | Thursday July 12, 2007 @ 5:31pm PDT

sitrick.jpgI’ve known Mike Sitrick for a long time. He’s a PR maven who prides himself on being a family man. Which is why he should be filled with self-loathing for allowing his firm to promote a torture porn pic like Captivity, much less an even more disgusting premiere party whose selling point was its political incorrectness. (Let me make it perfectly clear: I support talent’s right to make the movie, just not business people profiting from it.) Sure, I received all those inane emails announcing the bash, and I did the right thing: I trashed them. Other journalists fell all over themselves covering the event so as to diss it: really, they’re lemmings hurling themselves off the cliff. There is only one way to stop the business of these torture porn movies: by shaming the people who receive money for releasing them, publicizing them, having anything to do with them. So, Mike, how could you? (And how could you, After Dark’s  Courtney Solomon and Allan Zeman?) Take that Captivity money and donate it to charity and pledge publicly right now you’ll never get involved with torture porn pics again. Until Mike does, I urge Hollywood and other companies to shun Sitrick and Company because there is such a thing as guilt by association.

Comments (0)