Montecito Raises $200 Million for 10 Picture Film Slate for DreamWorks First Look

Montecito Raises $200 Million for 10 Picture Film Slate for DreamWorks First Look

LOS ANGELES, Aug. 14 /PRNewswire/ -- A $200 million production facility has been raised to co-finance motion pictures produced by The Montecito Picture Company. The transaction was announced today by Montecito principals Tom Pollock and Ivan Reitman.

The new financing vehicle, to be called Cold Spring Picture LLC, will co-finance ten motion pictures over the next five years. Cold Spring will have a first look agreement with DreamWorks Studios, coinciding with Montecito's new five year first look agreement with DreamWorks, a relationship which has resulted in a number of successful comedies including ROAD TRIP (2000) and OLD SCHOOL (2003). The first of the ten Cold Spring pictures, DISTURBIA, starring Shia LaBeouf, David Morse, Carrie-Anne Moss and Sarah Roemer, directed by DJ Caruso, has already completed principal photography, and will be released by DreamWorks through Paramount Pictures in 2007.

The $200 million capitalization is a combination of equity provided by Merrill Lynch and a consortium of hedge funds, together with bank debt, provided by a team of banks led by Merrill Lynch and Societe General.

Pollock and Reitman pointed out that while the agreement gives DreamWorks a first look on all Montecito and Cold Spring pictures they are free to accept projects from other major studios and to set up pictures that DreamWorks declines to co-finance.

"It is my hope to continue to create wonderful movies that will launch the film careers of a new generation of comedy talent," said Reitman.

"I'm proud of the confidence shown us by Merrill Lynch and our equity partners, as well as by Societe General," added Tom Pollock. "We are all very excited to be continuing our extremely productive six year relationship with DreamWorks."

Mike Blum, Managing Director and Head of Global Structured Finance & Investments, at Merrill Lynch, added "This deal is groundbreaking. We believe this is a unique investment opportunity to capitalize on the skills and experience of two of the most successful producers in Hollywood. The combination of 30 years of Ivan's directing and producing, and Tom's extensive background as an entertainment attorney, Chairman of Universal Pictures, and a Producer at Montecito are the ideal combination."

DreamWorks Co-Chairman and CEO, Stacey Snider said, "We are equally pleased about our continuing relationship with Montecito. We've loved working with Ivan, Tom, and all of us at DreamWorks look forward to working with their company to develop and produce films for a worldwide audience."

Deal was negotiated by Loeb & Loeb and Ziffren Brittenham with DreamWorks on behalf of Montecito and Cold Spring Pictures. The financing and banking arrangement by Sidley and Austin on behalf of Merrill Lynch and by Shepherd Mullin on behalf of Societe General and by Loeb & Loeb on behalf of Montecito and Cold Spring Pictures. The Spartan Group acted as Financial Advisor.

About Montecito Picture Company

Formed in 1998, The Montecito Picture Company has produced such films as ROAD TRIP, EVOLUTION, OLD SCHOOL and EUROTRIP. The company is currently in production on DISTURBIA, starring Shia LaBeouf, Carrie-Anne Moss, David Morse, and Sarah Roemer, scheduled for release by DreamWorks in 2007. The company has offices in Santa Barbara and Beverly Hills. Tom Pollock served as Vice Chairman of MCA INC. from July 1995 to March 1996. He previously served as Executive Vice President of MCA and Chairman of its Motion Picture Group, Universal Pictures, from September 1986 to July 1995. One of the most highly-regarded and experienced attorneys in the entertainment field, he was previously the Senior Partner of Pollock, Bloom and Dekom. In 1998, Mr. Pollock together with Director/Producer Ivan Reitman set up The Montecito Picture Company.

Ivan Reitman, as a producer and director, has created many of contemporary cinema's most successful and best-loved film comedies. From raucous comedies like ANIMAL HOUSE, STRIPES, TWINS, KINDERGARTEN COP, BEETHOVEN, BEETHOVEN'S 2ND and GHOSTBUSTERS, to more sophisticated delights like DAVE and 6 DAYS/7 NIGHTS, Reitman has been the creative force behind films beloved by audiences around the world. He currently heads The Montecito Picture Company, a film and television production company with partner Tom Pollock, in association with DreamWorks Studios.

About DreamWorks Studios

DreamWorks Studios was formed in 1994 by Steven Spielberg, Jeffrey Katzenberg, and David Geffen. The company won three consecutive Best Picture Academy Awards with AMERICAN BEAUTY, GLADIATOR and A BEAUTIFUL MIND (both co-produced with Universal.) Among the company's other successes have been such films as SAVING PRIVATE RYAN (co-produced with Paramount), THE RING, CATCH ME IF YOU CAN, MINORITY REPORT (co-produced with 20th Century Fox), and WAR OF THE WORLDS (co-produced with Paramount). Among its upcoming productions are FLAGS OF OUR FATHERS (co-produced with Warner Brothers), DREAMGIRLS and TRANSFORMERS (both co-produced with Paramount).

Source: DreamWorks; Montecito Picture Company

CONTACT: Jennie Reinish, +1-805-565-0461, jreinish@montecitopic.com, for
Montecito; or Marvin Levy, +1-818-733-9787, mlevy@dreamworks.com, for
DreamWorks

-------
Profile: intent