Another Slew of Comic Book Heroes to hit the Big screen
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NEW YORK (AP) - Comic book publisher Marvel Enterprises Inc. on Tuesday said it completed a new $525 million debt facility to independently finance a slate of films based on its characters.
In the past, the company licensed its comic book characters and story lines to other studios such as Sony Pictures and 20th Century Fox. The new arrangement -- under which Marvel is also changing its name to Marvel Entertainment Inc. -- gives the company creative control, the right to build a film library and "greater profit potential."
Marvel said it will use the seven-year, $525 million nonrecourse debt facility to finance up to 10 films based on characters such as Captain America, Nick Fury and the Avengers. The credit line, which was arranged by Merrill Lynch, Pierce, Fenner & Smith Inc., includes $465 million in revolving senior bank debt and $60 million in mezzanine debt.
As producer, Marvel said it will receive all film-related merchandising revenue, and all profits. Paramount, a unit of Viacom Inc., will distribute the films, with the first release slated for summer 2008.
The move comes amid Marvel's struggle with weakening sales. In the latest second quarter, the company posted an 11 percent drop in profit, hurt by sharply lower licensing and toy sales amid waning demand for merchandise from last summer's "Spider-Man 2" movie.
Marvel said the 10 characters in the arrangement are Captain America, The Avengers, Nick Fury, Black Panther, Ant-Man, Cloak & Dagger, Dr. Strange, Hawkeye, Power Pack, and Shang-Chi. Each film is expected to have a budget of up to $165 million dollars and a rating no more restrictive than PG-13. Although the financing allows for the production of animated films, Marvel currently intends to use the funds to make only live-action films.
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MSN Money - Associated Press Business News: Marvel to Finance Up to 10 Films
Since when did Ant Man become popular?
