BLUE RIDER FINANCE

Since 1998, Blue Rider has helped finance over 70 films with production budgets totaling more than $560 million. With no advertising and little marketing, Blue Rider has emerged as an acknowledged industry leader in short-term interim finance, also known as Bridge Financing. Recently, Blue Rider’s principals helped form Blue Rider Finance, Inc., a company specifically devoted to providing financing of all kinds to a range of entertainment-related projects. Blue Rider Finance, Inc. is a licensed lender of the State of California.

Blue Rider not only brings cash to a production, but also can help others navigate the very difficult process of arranging and completing motion picture financing. In this respect, Blue Rider often helps facilitate the closing of the financing so the producing and/or sales team can focus on the many tasks associated with pre-production, principal photography, post-production and distribution.

WHAT IS BRIDGE FINANCING?
Bridge Financing is a loan made to a production prior to its primary production facility closing with another recognized lender. Without a Bridge Loan, and without cash flow, many independent producers risk losing actors and other key “elements“ while waiting for their main bank loan to close. Bridge loans can help keep productions from falling apart. Blue Rider has lent sums ranging from $75,000 to $8 million, for periods averaging 90 to 120 days. When a production’s bank loan closes, the production repays Blue Rider’s Bridge Loan in full and also pays Blue Rider a fee.

OTHER TYPES OF FINANCING OFFERED BY BLUE RIDER
The majority of Blue Rider-financed productions fall under the category of Bridge Financing. However, Blue Rider also provides funding in other categories such as Gap and Super-Gap loans to producers in conjunction with banks and bond companies; Acquisition Loans to sales companies to help them acquire targeted product; Tax Credit Financing; Collateral Shortfall loans; P&A (prints and advertising) Funds for US Theatrical Releases; Working Capital loans to production companies and distributors, and; Post-Production Finishing Funds to producers who manage to finish principal photography without a bond and lack the necessary resources to complete delivery.

Here are some definitions of other kinds of financing Blue Rider has helped arrange over the past year, along with examples:

Gap and Super-gap Funds denote a loan to a single-purpose entity where the bank or Blue Rider offers funds against sales estimates and, in some cases, pre-sales. Then She Found Me and Straight Edge are examples of Gap and Super-Gap Loans.

Acquisition Funds are provided to a corporate borrower, such as a sales agent, who then acquires rights in a project in post-production or ready for delivery. The loan to Alien Agent and Numb are examples of this kind of transaction.

Post-production Finishing Funds denotes a loan to a single-purpose entity for a film that is nearly complete. In these cases the films are often un-bonded. The loan to Home Of The Giants and Keith are examples of Post-production Finishing Funds.

One of Blue Rider’s strengths is recognizing the unique and complex nature of each borrower’s financial needs and resources. Eschewing rigid guidelines or parameters, the Company strives to be flexible when determining the viability of a project. Blue Rider views each transaction individually and as carefully as possible, knowing that the elements that lead to success are hard to generalize.