Film Department IPO scheduled for this week [Updated]
[Update, 11:18 a.m.: According to a person familiar with the situation, The Film Department IPO will be delayed a few weeks and take place in the second half of February.]
Struggling independent financier the Film Department is scheduled to go ahead with its initial public offering this week.
As our colleagues at The Times' Money & Co. blog reported, the studio behind "Law-Abiding Citizen" -- its only release so far -- is looking to raise about $90 million by selling 6.5 million shares of stock on NASDAQ for up to $14.
In its IPO registration filed in January, the Film Department revealed that it has lost $34 million so far and has $40 million in debt, despite having raised $200 million when it launched in 2007.
If the IPO is successful, the Film Department plans to expand beyond film financing into marketing and distribution with the addition of former Paramount Pictures marketing chief Gerry Rich, who would join as vice chairman. However, the company needs to raise substantial funds beyond its IPO to make that plan work, including a targeted $157.5 million in new debt.
We'll be watching to see whether the Film Department goes through with its IPO this week and, if so, how its stock performs.
-- Ben Fritz
Related:Independent financier Film Department plans IPO