Film Finance Term Sheet:

 Information about the creative aspects of the project

 Budget, schedule, post-production schedule
 Attachments
 Management / Production Team
 Summary of Financial Structure (Sources of Financing)
 Key Investment Terms

Sources of Financing:

 Equity: offering (operating) agr; subscription agr for investors

o Securities law regulations
o Members provide cash contributions or in-kind services
o After recoupment:
 50% to investors, pro rata, pari passu
 50% to mgmt/production less (backend) talent participations
 Bank / Traditional debt:
o Loan
o Security
o Subordination
o Interparty
 Fund / Private debt
 Bridge
o Gets paid at closing or PP
o High interest rate
o High risk
o Security interest in © until repayment; risk of foreclosure
 Mezz / Gap
o Still lending against sales estimates
o May require Sales Agent interparty
 Donations / fiscal sponsorship
 Crowdfunding

Types of collateral:

 Presales
 Tax credits
 "Gap" – foreign and domestic estimates
 other soft money contributions
Raising Money:

Equity financing:

 Business plan and PPM docs

 Advising clients
 Accredited investors v. friends and family
 Development v. production financing v. finishing funds

Debt financing:

 Financial structure outline

 Identifying collateral
 Advising clients
 Distinguishing between advisers and sources