Alcon Entertainment and Warner Bros. are extending their long-standing distribution deal through 2019
Los Angeles based financing and production company Alcon Entertainment is extending its long-standing “output” distribution agreement with Warner Bros. through 2019. The company has concurrently arranged a $200 million senior secured credit facility via a structured finance transaction involving a bank syndicate led by JP Morgan Chase, CIT Bank and Bank of America, it was announced by Alcon co-founders and CEO’s Andrew Kosove and Broderick Johnson.
Alcon is a wholly independent, multi-media company with its core business in film finance and production. Its films have generated approximately $2 billion in worldwide theatrical box-office. Alcon also has additional entertainment divisions, in television, music and literary management, all sharing with the film unit the common goal to create and own content.
Alcon’s distribution partnership with Warner Bros. was initiated in 1998, the year after Alcon was founded, and remains one of the industry’s most enduring arrangements between an independent company and a major studio.
The new pact marks the fifth time in the past 17 years the two companies have extended the agreement. Starting this Fall with the release of The 33, Warner Bros. will release a minimum of 10 new films from Alcon Entertainment. Alcon has the option to distribute its pictures internationally through Warner Bros., but also has the flexibility instead to presell rights through its long-standing partner Lionsgate International.
“The distribution extension and new financing will assist Alcon in maximizing liquidity,” say Johnson and Kosove, “and allow us to maintain our focus on producing and marketing our films. We value tremendously our close, ongoing relationship with Warner Bros., and we’re thrilled that it will continue.”
“Andrew, Broderick and Alcon have been great partners to Warner Bros. for the last 15 years,” adds Kevin Tsujihara, Chairman and CEO, Warner Bros. “Their films are always great additions to our slate, and I’m very glad they’ll continue to be a part of the Warner Bros. family for years to come.”
Alcon’s relationships with JPM Chase and Bank of America dates back to 2001when Alcon initiated its borrowing base facility. The companies continued their affiliations and significantly increased their business together 2008 with their first structured financing deal in 2008, where CIT Bank became a co-lead.
“The relationship with our core lenders have been vital to the Company’s success,” says Alcon’s COO Scott Parish. “Our bank partners have supported Alcon in all phases of our history. They are creative business people in the best sense, and in our experience the best, bar none”.
Alcon’s next release, The 33, is a firsthand account of the incredible true story of the 33 survivors who lived through the 2010 Chilean mine collapse. The film, starring Antonio Banderas and Juliette Binoche, will be released wide via Warner Bros. on November 13th.
The release of The 33 will be followed on Christmas day with a wide opening of Point Break, a reimagining of the classic action movie that filmed on four continents, starring Edgar Ramirez, Luke Bracey and Ray Winstone. Alcon is currently in principle photography on the road trip comedy Bastards, starring Owen Wilson and Ed Helms, and is in pre-production on a sequel to Blade Runner, with Ryan Gosling in negotiations to star with Harrison Ford. Denis Villeneuve is directing, Ridley Scott is Executive Producing.