The Carlyle Group has provided a $125 million term loan to London-based New Regency, a film production company. J.P. Morgan served as sole bookrunner, co-lead arranger and administrative agent. New Regency has produced many highly acclaimed movies, among them, the Oscar-winning “12 Years A Slave” and “Birdman.”
LOS ANGELES –New Regency has extended the term of its credit facility led by J.P. Morgan for an additional five years. The extension is also backed by Bank of America, Union Bank, SunTrust and several other banks, and includes a revolving facility with a capacity of $700 million. Additionally, New Regency has also closed a five and a half year, $125 million term loan from The Carlyle Group. Carlyle’s Direct Lending platform, which is part of Carlyle’s Global Credit division, served as co-lead arranger on the term loan. J.P. Morgan, which has arranged financings for New Regency for decades, served as sole bookrunner, co-lead arranger and administrative agent.
The closing of these two deals gives New Regency a firepower of $825 million. The commitments were announced today by New Regency Founder Arnon Milchan and Yariv Milchan, Chairman and CEO.
Despite the current global health and economic crisis, New Regency’s film library continues to maintain robust value and the transaction provides new capital for New Regency to continue to produce differentiated content. New Regency has an established, productive relationship with The Walt Disney Company, which currently distributes its films worldwide through 20th Century Studios.
With approximately $5 billion of assets under management, Carlyle’s Direct Lending platform is focused on making directly originated investments in the middle market across the capital structure, including senior secured loans, unitranche loans and junior debt. The team is comprised of more than 30 dedicated investment professionals in New York, Los Angeles, Chicago and Boston.
Yariv Milchan stated, “We’re looking forward to continuing our relationship with J.P. Morgan and to begin this new partnership with The Carlyle Group. Carlyle’s unique combination of deep knowledge of the film industry, flexible capital and ability to tailor a solution to meet the specific needs of our business makes them an ideal partner. This arrangement will position New Regency to continue to grow and produce high-quality, creative-driven content for audiences worldwide.”
“We are excited to partner with New Regency and J.P. Morgan,” commented Jonathan Pearl, Managing Director of Carlyle Direct Lending. “New Regency has built a unique library of independently produced films by consistently delivering critically acclaimed box office hits over the course of its long track record of success. We look forward to supporting the company’s continued growth, particularly during this unprecedented period of economic and market volatility.“
“We are thrilled to work with The Carlyle Group to help our longstanding client, New Regency, continue to innovate and thrive,” added David Shaheen, Head of Entertainment Industries and West Region for J.P. Morgan’s Corporate Client Banking and Specialized Industries business.
New Regency’s upcoming slate includes Adrian Lyne’s DEEP WATER, starring Ben Affleck and Ana de Armas, EVERYBODY’S TALKING ABOUT JAMIE, a film adaptation of the acclaimed musical starring Richard E. Grant, Sharon Horgan, Sarah Lancashire and newcomer Max Harwood, an untitled original film from David O. Russell starring Christian Bale, Michael B. Jordan and Margot Robbie, as well as Robert Eggers’ THE NORTHMAN starring Alexander Skarsgård, Nicole Kidman and Willem Dafoe.
Based out of London, New Regency’s international TV arm draws from the company’s long-established relationships with the best writing, directing and producing talent. The division is focused on developing and producing high-end, authored and distinctive scripted content for the international marketplace.
New Regency also has an international sales team primarily based out of London which handles international licensing activities for the company’s library of films and television shows.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $217 billion of assets under management as of March 31, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,775 people in 32 offices across six continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.
Carlyle Global Credit is the credit investment arm of The Carlyle Group with approximately $49 billion of assets under management. The group’s investment strategies span the credit spectrum: liquid credit, illiquid credit and real assets credit. Since 1999, Carlyle Global Credit has provided creative solutions for borrowers and delivered attractive risk-adjusted returns for investors by drawing on the deep credit expertise and disciplined underwriting capabilities of our over 150 investment professionals and by leveraging the resources and industry expertise of Carlyle’s global network.
About New Regency
Founded in 1991 by renowned producer Arnon Milchan, New Regency is actively engaged in entertaining the world. The company has produced some of the most successful and critically-acclaimed films of all time with over 140 films and more than 50 television series in the company’s vast library, including Academy Award®-winner “The Revenant” (2016), the back-to-back Academy Award®-winning Best Pictures, “12 Years A Slave” (2014) and “Birdman” (2015) as well as the 2018 box office hit “Bohemian Rhapsody.” The company also backed celebrated filmmaker Alejandro G. Iñárritu’s conceptual virtual reality installation “Carne y Arena,” and the Broadway musical “Pretty Woman,” adapted from the beloved 1990 romantic comedy film originally produced by Arnon Milchan. New Regency is dedicated to continuing to foster its unparalleled filmmaker relationships and today boasts partnerships with the most acclaimed and sought-after creative forces in the industry.