The investment bank has been quietly negotiating with Relativity for months to lead a $700 million investment in the company, a story that TheWrap broke in May. One individual close to the parties involved said that Burkle is circling a JP Morgan deal to buy out Elliott Management’s minority interest in Relativity.

One person involved said the loan was obtained at an 8.5 percent interest rate, and defined the gross figure as coming only after advertising and production costs have been recouped.īut another person with knowledge of the deal said that the interest was at 15 percent, and that Colbeck would receive “first dollar gross,” meaning cash direct from box office receipts.īurkle came close to buying Miramax with Harvey Weinstein two years ago, and currently co-finances movies with The Weinstein Company. Individuals close to the deal differed over how onerous the terms of the loan were. The loan terms included giving Colbeck close to 5 percent of the gross box office receipts from “Immortals” and from Relativity’s upcoming Snow White epic, “Mirror, Mirror.” The money was needed to help Relativity cover “Immortals’” multi-million marketing costs and also so that Relativity could continue to make movies, according to several individuals with knowledge of the loan. The loan was obtained from Colbeck Capital Management, a fund in which Burkle has invested. LOS ANGELES () - Just weeks before the release of his first big-budget epic, “Immortals,” Relativity Media CEO Ryan Kavanaugh took a $200 million loan from billionaire Ron Burkle, TheWrap has learned.

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