Bank Financing Worksheet
Assumptions Borrowing Period in Months Interest Rate Pre-Sale Discount Incentive Percent of Sale License Advance Letter of Credit Discount Rate Bankable Contract Discount Rate Budget Actual Production Budget Post-Sale License Values Foreign Territory License(s) Value Domestic Ancillary License(s) Value Description Foreign Territory License(s) Value Foreign Territory Presale(s) License Advance(s) Letter(s) of Credit Amount Bank Discount Amount Loan Value Domestic Ancillary License(s) Value Domestic Ancillary Pre-Sale(s) License Advance(s) Bankable Contract(s) Amount Bank Discount Amount Loan Value
18 10.00% 20.00% 10.00% 10.00% 20.00% $ 47,000,000 $75,000,000 4,000,000
$
Amount Explanation $75,000,000 Post-sale values of foreign territory licenses $ 60,000,000 Pre-sale discounted amount (20% discount) 10% of the license amount--this is the amount actually paid by the $ 6,000,000 licensee(s) at license origination. This is the form of collateral guaranteeing payment of the license $ 54,000,000 balance upon delivery of the picture. 10% of collateral amount--this is the amount discounted by the bank. $ 5,400,000 You are paid this when the LC is called. $ 48,600,000 This is the collateral value upon which the loan is written. $ $ $ $ $ $ 4,000,000 Post-sale values of premium cable and/or network license(s) 3,200,000 Pre-sale discounted amount (20% discount) 10% of the license amount--this is the amount actually paid by the 320,000 licensee(s) at license origination This is the form of collateral guaranteeing payment 2,880,000 of the license balance upone delivery of the picture 20% of collateral amount--this is the amount discounted by the bank. 576,000 You are paid this when the contract is called 2,304,000 This is the collateral value upon which the loan is written.
Gross Collateral Loan Value Actual Production Budget (not including Interest) Cash from License Advances Production Funding Needed through Loan Actual Required Interest Reserve * Total Required Bank Loan
$
50,904,000 This is the total collateral value from all presales
$ $ $ $ $
47,000,000 Physical production budget of picture 6,320,000 Sum of license advances Production budget (not including interest) less cash 40,680,000 from licenses This is the amount reserved by the bank for loan interest that will be 6,102,000 due. 46,782,000 This is your total loan collateral value for this picture. This is the amount of collateral you have in excess or are short of 4,122,000 what you actually need. 108.81% Degree of collateralization Yes Overall results
Collateral Margin Percentage of Collateralization Collateral Sufficiency?
$
* for simplicity of exercise, this worksheet assumes that the entire loan amount is borrowed at commencement of lending Entertainment Business Group 805-383-2766