BLUE RIDER FINANCE
Since 1998, Blue Rider has helped finance more then 100 films with production budgets totaling over $687 million. With no advertising and little marketing, Blue Rider has emerged as the acknowledged industry leader in short-term interim finance, also known as Bridge Financing. A few years ago, Blue Rider Entertainments principals helped form Blue Rider Finance, Inc., a company specifically devoted to providing financing of all kinds to a range of entertainment-related projects.
Blue Rider not only brings cash to a production, but also can help others navigate the very difficult process of arranging and completing motion picture financing. In this respect, Blue Rider often helps facilitate the closing of the financing so the producing and/or sales team can focus on the many tasks associated with pre-production, principal photography, post-production and distribution.
WHAT IS BRIDGE FINANCING?
Bridge Financing is a loan made to a production prior to its primary production facility closing with another recognized lender. Without a Bridge Loan, and without cash flow, many independent producers risk losing actors and other key elements while waiting for their main bank loan to close. Bridge loans can help keep productions from falling apart. Blue Rider has lent sums ranging from $75,000 to $8 million, for periods ranging from two weeks to three years (and currently averaging 10.7 months). When a productions bank loan closes, the production repays Blue Riders Bridge Loan in full and also pays Blue Rider a fee.
OTHER TYPES OF FINANCING OFFERED BY BLUE RIDER
The majority of Blue Rider-financed productions fall under the category of Bridge Financing. However, the Company also provides funding in other categories such as Gap and Super-Gap loans to producers in conjunction with banks and bond companies; Acquisition Loans to sales companies to help them acquire targeted product; Tax Credit Financing; Collateral Shortfall loans; P&A (prints and advertising) Funds for US Theatrical Releases; Working Capital loans to production companies and distributors and Post-Production Finishing Funds to producers who manage to finish principal photography without a bond and lack the necessary resources to complete delivery.
Here are some definitions of other kinds of financing Blue Rider has helped arrange over the past few years, along with examples:
Gap and Super-Gap Funds denote a loan to a single-purpose entity where the bank or Blue Rider offers funds against sales estimates and, in some cases, pre-sales. Then She Found Me and Boot Camp are examples of Gap and Super-Gap Loans.
Acquisition Funds are provided to a corporate borrower, such as a sales agent, who then acquires rights in a project in post-production or ready for delivery. The loan to Alien Agent and Numb are examples of this kind of transaction.
Post-Production Finishing Funds denotes a loan to a single-purpose entity for a film that is nearly complete. In these cases the films are often un-bonded. The loans to Home Of The Giants and Keith are examples of Post-production Finishing Funds.
One of Blue Riders strengths is recognizing the unique and complex nature of each borrowers financial needs and resources. Eschewing rigid guidelines or parameters, the Company strives to be flexible when determining the viability of a project. Blue Rider views each transaction individually and as carefully as possible, knowing that the elements that lead to success are hard to generalize.
In 2009, Blue Rider will explore the possibilities of providing Bridge loans to additional segments of the entertainment industry, including, TV, games, the Internet and new-tech ventures.