WHAT IS HEATSEEKER’S LATE-CYCLE DEVELOPMENT
FINANCE USED FOR?
AND WHY IS IT SO IMPORTANT TO PRODUCERS?
HEATSEEKER MODEL
Development Money Invested
Heatseeker invests its money into producers with a proven track record of going into production. The money is vital to the producer’s business and cash flow. It is attractive in that they are able to spend it across their slate, as they see fit.
The Loan is Repaid
The loan and corresponding premium are repaid from the project that is most advanced and that enters production first, regardless of format (feature film or TV).
The Load Term Ends
Every loan has a maximum duration of 24 months after which it must be repaid with the premium even if no projects have been produced, mitigating our investor’s overall risk and exposure over time
EXAMPLE LOAN-CYCLE TIMELINE
Stage 1 – Producer Dialogue
Initially, Heatseeker enters into dialogue with established producers in its extensive global network. We examine their track record, investigate their slate of upcoming projects, analyze which projects are likely to go into production first, and come to a judgement on whether the producer is suitable for a loan.
Stage 2 – Loan Approved
After our analysis phase is complete, we approve a development loan of a certain amount to the producer. Through an efficient, templated contracting system we then contract the loan and transfer the monies. Film A is the producer’s most advanced project and intends to shoot in 6 months’ time. On the first day of the shoot, the loan would be repaid along with the premium.
Stage 3 – If Film B goes first
But if Film A is not the first project to enter production, from the producer’s slate, the loan rolls on to the next project into production, Film B.
Stage 4 – Film B repays the loan
The producer makes “Film B”. On the first day of the shoot – 10 months after the producer received the loan – he repays it out of his fees on Film B, including the premium.