DreamWorks to Float Huge Loan with Investors
The pitch was made to Wall Street investment brokers during the last week of November, and is currently being shopped to their European counterparts. The deal is the latest in a wave of Wall Street/Hollywood pairings, according to Reuters. DreamWorks, with a good track record of hits, is being hawked as a solid investment with almost certain future revenue. One important caveat: The type of security that will be offered to investors cannot be easily bought or sold, as common stocks can.
DreamWorks' debt is being sold in two classes of securities, one by Chase Securities and the other by Bear Stearns & Cos. Inc. Bear Stearns will manage a $375 million offering; Chase will manage a smaller one, valued at $150 million. The Chase segment received an AAA rating from Moody's Investors Service because payment of its principal and interest is backed by a reinsurance fund.