Caped Crusaders Close Cash

Marvel Entertainment is the renamed comic player, seeking to better capitalize on the exploitation of its stable of characters in movies, according to Variety. The name change -- from Enterprises, though someone should notify the webmaster -- comes as Marvel has closed its credit facility with Merrill Lynch and is developing titles for its ten pic distribution deal with Paramount.

The terms of the $525 million credit facility allow Marvel to fund films with budgets between $50 million and $165 million. Although Marvel will be financing all initial development costs out of pocket, once a picture has been greenlit, those moneys already spent will be reimbursed through the credit facility. And what's keeping Merrill in the lending business at Marvel? Theatrical film rights to the characters under development, should the slate not soar.

For Paramount, the deal was the first under Grey's administration and provides it with content to fill its slate and pockets while avoiding risking company capital. Marvel keeps a much larger portion of exploitation proceeds, paying Paramount a fee for marketing and distribution. Arriving prior to the announcement of the dissolution of UIP, this provides an indication of where Paramount is going to get the international fare it needs to fill its foreign distribution pipeline.