Loan Deal for Spielberg Is Near

BusinessWeek reports:

Financial industry sources say the $325 million in bank commitments for Spielberg's new studio, which retains the DreamWorks name, will likely close in mid-May. The debt had been expected earlier this year, but had been delayed.

But getting money, even for Hollywood's most bankable director, didn't come without strings. These sources have confirmed that to get the loan the new DreamWorks was forced to reduce the risk to banks to unheard-of levels. As part of the new debt agreement, Spielberg and company will be required to put up half the money for each film that it puts into production—much more than the 20% or less that studios traditionally have put up when they have bank lines to cover the rest.