NEW YORK - West Hollywood-based motion picture finance and production company Film Department Holdings Inc hopes to go public in an initial public offering that would raise $85 million to $100 million.
Film Department produces commercial films with net budgets between $10 million and $45 million, including Law Abiding Citizen with Gerard Butler and Jamie Foxx in 2009.
Although it has produced just two films since its founding in May 2007, Film Department plans to release six to ten films a year -- both in-house and third party films.
Worldwide box office receipts hit a record $28.1 billion in 2008, up 5.2 percent from a year ago. North American box office sales are up 8.2 percent so far this year, Film Department wrote in a filing with the U.S. Securities and Exchange Commission on Monday.
The company plans to sell 7.1 million shares priced between $12 and $14 each, and could sell an additional $5.6 million in overallotment.
Film Department said it would use its share of the proceeds for working capital and general corporate purposes, and to repay indebtedness.
The company posted revenue of $13 million in the nine months ended September 30, but did not provide a year ago comparison. It has only released one film so far in the United States, producing its first significant revenue in the third quarter of 2009.
The company posted a net loss of $14.2 million, 35.4 percent wider than the $10.5 million loss it posted in the same period a year ago.
Investors in the company include H&W Movie Partners LLC, Dubai-based Sandeman Ltd, and private equity firm SilverHaze Partners. The underwriter for the offering is IPO Solutions, a division of Girard Securities Inc.
Film Department plans to list on the Nasdaq under the symbol TFD.
(Reporting by Clare Baldwin; Editing by Phil Berlowitz)