U.K. filmmakers secure $210 mil credit line

Deal increases Renaissance's finance base

By ADAM DAWTREY

LONDON -- Renaissance Films, the London-based production and sales company, has secured a £150 million ($210 million) revolving credit line from Dexia Banque Internationale a Luxembourg.

Deal adds another key piece to the jigsaw of Renaissance's funding, which includes $40 million of equity investment from the Hermes pension fund and a co-financing relationship with Paul Allen's Clear Blue Sky.

"Whilst our equity is a very good base, our responsibility is to gear our money effectively and find the right kind of financing. Dexia-BIL represents an extremely useful addition," said Angus Finney, co-managing director of Renaissance.

Dexia-BIL will provide gap financing of up to 20% of a film's budget, triggered by pre-sales reaching 30%, with Renaissance putting up equity for the remainder.

Credit line will be used primarily as an acquisitions fund, enabling Renaissance to buy into projects from outside producers that are in late stages of development.

Positive for pickups

In particular, it will make it easier for the company to enter negative pick-up deals with U.S. distribs such as Miramax or New Line.

Renaissance previously had an ad hoc banking relationship with Societe Generale, which supported the company's last movie, "The Luzhin Defence."

This fall the company is shooting two pics -- Rose Troche's "The Safety of Objects," starring Glenn Close and co-financed by Clear Blue Sky; and Paul McGuigan's "Morality Play," with Willem Defoe.