Film Department Holdings Inc., an independent film finance and production company whose first U.S. release was “Law Abiding Citizen” starring Jamie Foxx, said it plans to go public in an initial public offering that backers hope will raise $85 million to $100 million.
The West Hollywood company plans to produce star-driven commercial films with net budgets between $10 million and $45 million, according to a Securities and Exchange Commission filing late Monday. The company next year plans to launch a U.S. distribution arm, led by former Paramount Pictures marketing president Gerry Rich, with a goal of distributing six to 10 of its own and other companies’ films annually.
The company, founded in May 2007, said it hopes to take advantage of current dislocations in the industry. Even as box office receipts are recovering from the recession, fewer small- and mid-budget films are being produced as major studios downsize their independent studio operations, and private equity funding for projects dry up, the company said.
Film Department’s founders include a veteran industry management team, Mark Gill and Neil Sacker, who had significant roles in successful independent films such as “Good Night and Good Luck,” “Crash,” and “March of the Penguins.” Investors in the company include H&W Movie Partners LLC, Dubai-based Sandeman Ltd, and private equity firm SilverHaze Partners.
Film Department’s upcoming release is “The Rebound,” starring Catherine Zeta-Jones, which is scheduled for release in the spring. In all, it has a slate of 20 projects, including “Earthbound,” starring Kate Hudson, which scheduled to start production next month.
The company had revenue of $13 million in the nine months ended Sept. 30, but did not give a year-ago comparison. It reported a net loss of $14.2 million, 35 percent larger than the same period a year ago.
The company plans to sell 7.1 million shares priced between $12 and $14 each, with additional $5.6 million in potential overallotment. Film Department said it would use its net proceeds for working capital, general corporate purposes, and to repay debt. The underwriter is IPO Solutions, a division of Girard Securities Inc.
