Miramax Said to Raise Less-Than-Planned $500 Million in Offering
December 05, 2011, 12:34 AM ESTBy Jody Shenn and Christopher DeReza
Dec. 2 (Bloomberg) -- Miramax, the producer of films such as “Shakespeare in Love,” raised a less-than-planned $500 million from securities backed by its library of more than 700 films and 14 television series and paid more in the offering than expected.
Miramax was attempting to raise about $550 million to pay a dividend of $142 million to owners and to refinance debt taken on when Colony Capital LLC and investor Ron Tutor bought the Santa Monica, California-based studio from Walt Disney Co. last year for $660 million, two people with knowledge of the situation said last month.
The asset-backed bond offering by Miramax Film NY LLC, which priced yesterday, included $350 million of BBB rated debt that yielded 6.3 percent, according to a person familiar with the deal who declined to be identified without authorization to discuss the sale. That slice was cut from a planned $400 million, with the yield being raised from guidance of about 6 percent.
The BB rated, $150 million class of the offering was priced to yield 13 percent, compared with guidance of 10 percent to 11 percent, the person said. Barclays Capital and Jefferies Group Inc. managed the sale.
--With assistance from Michael White in Los Angeles and Sarah Mulholland in New York. Editors: Alan Goldstein, Pierre Paulden
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To contact the reporters on this story: Jody Shenn in New York at jshenn@bloomberg.net; Christopher DeReza in New York at cdereza1@bloomberg.net
To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net
