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<H1>Lionsgate pacts with Goldman Sachs
</H1>Studio agreement to cover 23 films
By JILL GOLDSMITH
Lionsgate is wrapping up a $210 million slate financing pact led by Goldman Sachs in a sign that hedge funds remain attracted to Hollywood - or at least to particular deals -- despite mixed results in 2006.
Separately, Wall Streeters also said that Morgan Stanley is in the market selling a slate financing deal for Paramount Vantage, building on the "Babel" buzz.
The Lionsgate agreement covers 23 films, excluding the "Saw" movie franchise and films from Tyler Perry of "Diary of a Mad Black Woman" and "Madea's Family Reunion" fame. Perry's next pic is "Daddy's Little Girl" due out in February.
Lionsgate will get a distribution fee of 15% -- on the high side for slate deals --- showing just how the mini-studio has impressed Wall Street with its track record and its model of modestly priced pics.
Lionsgate execs declined to comment on the financing.
But people who have spoken with the company say it's been insisting up and down the block that the fresh coin doesn't mean it will abandon its model and launch into the big-budget arena. Investors in any case will have the opportunity to opt out of any picture costing over $50 million. Paramount Vantage parent Paramount Pictures has its own $300 million, 30-picture slate financing pact, Melrose 2, through Dresdner Kleinwort.
The excluded films are only Saw and Tyler Perry and investors have a right to not approve any film over 50 million. So Punisher is not only NOT excluded but could easily be made for 50 mill or under. Whether or not Lionsgate greenlights this sequel is another thing. Hurry the hell up!
Source: http://www.variety.com