Exhibitors finalize funding

http://today3d.blogspot.com/2010/03/exhibitors-finalize-funding.html

Digital Cinema Implementation Partners (DCIP), a consortium of North America's three largest exhibs, announced today that it has finalized funding, totalling $660 million, used to equip 14,000 screens with digital projection systems, a prerequisite for showing 3D titles.

DCIP, repping AMC Entertainment, Cinemark Holdings and Regal Entertainment, raised the money through JP Morgan and Blackstone Advisory Partners, including $445 million in senior bank debt, an additional $135 million in junior capital and $80 million equity from the member circuits.

"We are excited that with the continued support of our owners, studio partners and financial advisors we have completed this critical step in our process," DCIP CEO Travis Reid said in a statement. "Having this substantial financial package and our studio partnerships in place, we're pleased to launch this new era of technology to guests looking for an exceptional out-of-home experience."

Funding is meant to expediate digital conversion amid a recent logjam of 3D product and a major step forward for Hollywood and theater owners.

Last weekend, Disney rolled out its boffo 3D title "Alice in Wonderland," taking in a worldwide haul of $216.6 million with 3D revenue repping nearly 65% of the total take. "Alice" screened at 2,063 3D-equipped locations domestically with an additional 188 Imax locations.

In the coming weeks, Paramount will launch its 3D toon "How to Train Your Dragon" on March 26, followed a week later by Warner Bros.' "Clash of the Titan" on April 2.

Digital conversion costs upwards of $70,000 per screen, with 3D add-ons totalling another $10,000 to $15,000.

DCIP is a joint venture formed in early 2007 and has executed long-term deployment agreements with studio majors. The consortium and JP Morgan had expected to close the line of credit more than 18 months ago, but the economic crisis stalled those plans.

The bank group providing financing included JPM, GE Capital, Sumitomo Mitsui Banking Corporation, Barclays Bank, Credit Suisse, Morgan Stanley, Bank of America Merrill Lynch, Deutsche Bank and Citi.