In a tough credit market, David Ellison’s Skydance Media has secured a new $1 billion credit facility, giving the film and television studio greater flexibility to invest in its lines of business, which include a growing animation and a recently launched joint venture with the NFL. .
The new five-year credit facility replaces a $500 million 2021 revolver (which had a $1 billion option). The deal also comes less than a year after Skydance secured a $400 million investment round led by KKR, Redbird Capital Partners and CJ ENM, as well as the Ellison family (David’s father, Larry Ellison, is a co-founder). of tech giant Oracle and his sister Megan is the founder of Annapurna Pictures).
The deal is the second largest entertainment credit deal signed by JPMorgan in recent months, as the megabank led an $800 million installment on Legendary Entertainment in April.
The deal also comes amid a tumultuous year for the banking sector, where the Federal Reserve’s interest rate hikes have hampered the credit market. Some regional banks have also felt the pain of rising rates, notably Silicon Valley Bank and Signature Bank (which had a strong entertainment business through their Broadway connections). The failure of those banks led some in Hollywood to question whether they should continue to rely on specialized banking partners or consider doing more deals with larger banks like JPMorgan or City National Bank (which is owned by RBC).
“Over the last 13 years, Skydance has become an industry leader and our focus continues to be
we have a great opportunity to sustain and enhance our growth,” Skydance CFO and EVP of Business Operations Larry Wasserman said in a statement. “With the continued support of JP Morgan, our forward-thinking business structure and an unmatched network of partners, we are well positioned to continue taking global entertainment to new heights.”
“We are incredibly proud to build on our long relationship with Skydance Media, as they
it will continue to grow,” said David Shaheen, head of entertainment industries for JPMorgan Corporate.
Customer Banking Group. “This facility and the immense support from entertainment banking
community stand out as a true testament to the strength of your business and quality content throughout.