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Flowcharts of Collateral
Geneva Media Principal Protected Structure
Breakdown of Collateral Sources:
Service Credits = $ 32,000,000 Picture Subsidy = $ 32,000,000
Labor Credit = $ 32,000,000Canada Credit = $ 22,000,000
Pre-Sales = $ 21,000,000 Cash Values = $ 75,000,000
Commission = $ 15,000,000
Total Collateral = $ 230,000,000
$100,000,000 $100,000,000
Production Funds Insurance Costs
$75MMCASH
VALUES
$100,000,000Production Cost and no P&A cost
Fund spends:
$100,000,000Production Costs plus all P&A cost
Studio spends:
$200MM Media Slate
25% Profits 75% Profits
100% break-even for any bank or equity investor
Benefits: Families retain $ 750,000,000(FAMILIES STAY PROTECTED W/ $750MM IN BENEFITS)
Breakeven: Fund retains $ 118,000,000(FUND CAN RETAIN $118MM IN MEDIA TAX CREDITS)
(Estimated L&H Commissions on CAIC = $15MM to $18MM )
$200MM LOAN/EQUITY FACILITY w/ $230MM Collateral
CAIC
$750MM FACE
AMOUNTS
$200MM Geneva Media Structure
Geneva Media Principal Protected Structure
Hedge Fund
Bank
Producers
TV Network
Investors Payee Players Participants
Cast / Crew
CV(Cash Values)
CAIC(UL Policy)
IRS 83(b)
ERISA
MediaMitigation LPpays premiums
and has REBA onall policies on file
General Partnership (2%)Bank (1%) Media/Film Co (1%)
LPs capital contribution (98%)Cast / Crew swap bonus for equity
Cast / Crew’s Families
Media/Film Co.
Funds Bonus
Salary
UL Ownershipalways remainswith Cast/Crew
Media/Film Co. pays 162 Salary Bonus to Media Mitigation, LP
Media/FilmCo.
…NO MOVING PARTS, FULLY LEGAL, BANK AS FIDUCIARY…
Geneva Media Principal Protected Structure
Geneva Media Principal Protected Structure
Geneva Media Principal Protected Structure
“Insurance-Backed” Media Slates(similar to Destination Films and AIG P&C contracts)
“Cash-Backed” Media Slates(similar to tax credit or pre-sale discount contracts)
Property & Casualty Companieslike AXA or AIG unfortunately collected
too few premium dollars to suffciantly cover all $200mm of risk
Media Slate has $200,000,000 at risk
Property&
CasualtyPolicy
(wrapper)
PolicyProvisions
&Limitations(coverage)
Bankor
HedgeFund
$
DisclaimObligation
&Recind(lawsuit)
Life&
HealthPolicy(cash)
PolicyValues
&Benefits
(guarantee)
DisclaimObligation
&Recind
(unlawful)
Life & Health Companieslike Met, State Farm and Pan American
offer cash value accounts to suffciantly cover all $200mm of risk
Media Slate has no risk
Bankor
HedgeFund
$
Indieor
StudioFilms
$
Indieor
StudioFilms
$
P&C Premium:
$5,000,000 L&H Premium:
$100,000,000
Risk Mitigation Features
Geneva Media Principal Protected Structure
CAIC -- Cash Accumulation Insurance Contracts -- Provides a massive amount of liquid cash value which is set aside and reserved to protect fund assets. The proprietary use of CAIC adds life/health benefits for cast and crew members and also provides 100% cost recapture protection for all projects by effectively doubling or tripling Canadian and US tax credits
REBA -- Restrictive Employee Bonus Agreement -- Allows investors and banks to collateralize liquid cash surrender values inside CAIC. Aaa rated insurance carriers with a perfect track records in interest crediting and claims paying performance are also protected by State Guaranty Funds
Geneva Media Principal Protected Structure
Pre-Sales -- Discountable Contract Protection -- Foreign and domestic distributors promise to pay a fixed price for the right to exhibit media or sell software. Investors are thus protected by pre-payment agreements
Tax Credits -- Theatrical Incentives -- U.S. States and Canadian provinces provide between 32% and 62% reimbursement or credits for theatrical productions shot within their borders. Tax credits are considered collateral
Pick-Up Deal -- Studio Purchase Agreement -- A studio, TV network, or media company promises to purchase a project when it is finished, for a fixed price, which fully covers all of the fund’s production costs and invested expenditures
Geneva Media Principal Protected Structure
Contact:
This confidential investor preview document is intended solely for general informational purposes in order to foster the discussion of new business ideas with prospective partners and other persons relevant to such business. It is not intended as, and does not constitute,
an offer to sell, or a solicitation to buy, any security. Any such offer or solicitation, if ever made, shall be made by a prospectus, offering circular, offering memorandum, or similar
document which will contain updated and additional information as well as a discussion of risks and other important matters. Such information, and any other information provided to the recipient about the business ideas contained herein, may be based on estimates and
assumptions (which may be subjective), and information provided by third parties. All of the foregoing, as well as the information in this document and any other information provided to
the recipient, are subject to change. Any reproduction or distribution of this confidential document in whole or in part, or the divulgence of any of its contents without the prior written
consent of Geneva Media Holdings, LLC and is prohibited. Any distribution of this confidential document to any person other than the person to whom it was originally delivered by Geneva Media Holdings, LLC , or its authorized agent, is prohibited. By
accepting this confidential document, the recipient agrees to abide by all of the foregoing conditions.
Beverly Hills, CaliforniaTelephone 424.666.8769
Geneva Media Principal Protected Structure