Electric Entertainment Announces Financing Deal

Los Angeles-based production and distribution company Electric Entertainment has announced the closing of a $100 million loan credit facility with Bank of America.

The five-year agreement will be initially used for the expansion of Electric’s production slate that includes “Leverage: Redemption,” “The Ark” and “Almost Paradise,” among other programs.

“This facility is our largest to date, exemplifying Bank of America’s recognition of Electric’s continuous growth,” Jeff Gonzalez, CFO of Electric Entertainment, said in a statement. “The credit agreement allows us to continue on our quickly moving trajectory.”

“With the advent and continuation of the streaming industry’s growth, we have been lucky to continue to do what we do best — create original scripted programs that audiences love,” Dean Devlin, CEO of Electric Entertainment, said in a statement. “With not only our broadcast, but now our streaming channel and platform partners, our content is in higher demand as our distribution expansion has become far-reaching.”

In the past year, the company produced three TV series — all streaming platform and broadcast originals. Electric is currently wrapping up production on its  second season of “Leverage: Redemption,” the spin-off continuation of “Leverage,” one of Amazon Freevee’s first original programs. “Almost Paradise,” which originally aired on WGNA, has been greenlighted for a second season for Freevee and is currently in production.  In addition, Electric’s new series “The Ark” just wrapped and will air as a SYFY Channel original.

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“Bank of America was pleased to work closely with Dean and the Electric Entertainment management team to help them chart their future growth,” Randy Hua, head of the Entertainment Industries Group at Bank of America, said in a statement. “Electric has a strong pipeline of creative broadcast and streaming projects and can continue to increase their influence through diverse channels.”

Electric also has its own app ElectricNow, a premium OTT linear channel and app containing programs produced and acquired by the company. It can be found on the Roku Channel, Plex, STIRR, Local Now, Sling TV, Tivo Plus, Freevee, XUMO and Samsung.

Redbox Gets Access to $50 Million in Additional Financing, Stock Soars

Redbox Entertainment, in a regulatory filing, disclosed it has received access to line of credit worth $50 million, as part of a restructured “Voting and Support Agreement” with HPS Investment Partners. As previously, reported, Redbox downsized its board of directors to five from nine members, including the addition of three new directors.

The news sent Redbox shares up than 32% in midday trading.

Redbox, which posted a net loss of more than $140 million in 2021, is attempting to transition the company from its legacy packaged-media kiosk business to include a digital focus on transactional VOD and ad-supported VOD content. The company generated $35.1 million in digital revenue, down from $39.7 million in 2020.

Redbox is eyeing more than $31.4 million in long-term debt this year, a tally that jumps to $271.5 million in 2024.

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GameStop Partners With ‘Buy Now, Pay Later’ Company Ahead of Expected Winter Video Game Market Surge

With Microsoft and Sony unveiling pricing and release dates (Nov. 10 and 12, respectively) for next-generation video game consoles and software, GameStop has partnered with QuadPay to offer consumers an in-house “buy now, pay later” financing option that incorporates their existing credit or debit cards.

GameStop is seeking to build out the capabilities and services of its digital and in-store ecosystem by offering gamers a variety of payment options to more-affordably purchase video games and other merchandise this holiday season.

QuadPay lets consumers split any purchase into four interest-free installments paid over six weeks using their existing credit card or debit card when they shop online or in-store. It is available at GameStop’s retail stores and at GameStop.com.

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“As we continue to find new ways to expand the purchasing choices for our customers, we are pleased to partner with QuadPay to offer a new flexible payment option that will enable customers to affordably purchase the products they want from us this holiday season,” Chris Homeister, chief merchandising officer for GameStop, said in a statement.

The financing option comes as Microsoft reintroduced its Xbox All Access, enabling consumers to split the cost of a console purchase for $24.99 monthly over 24 months.

GameStop joins QuadPay’s network of more than 4,700 integrated merchants and global retailers. Within days of implementing their system, QuadPay claims merchants typically see an increased conversion rate up to 20%, and average order values increase up to 60%.