Anil Ambani's ADAG completes first phase of funding for Spielberg's DreamWorks

Anil Dhirubhai Ambani Group (ADAG)'s entertainment arms Reliance Big Entertainment and Reliance BIG Pictures have  completed the first phase of financing of their deal with DreamWorks Studios run by Steven Spielberg and Stacey Snider, its principal partners.

The total amount of $425 million came from three sources. While JP Morgan Securities provided around $325 million in senior debt, ADAG provided an equal amount with equity commitment, and Walt Disney loaned $175 million.

Joining the DreamWorks board of directors are Reliance Capital's vice chairman Amitabh Jhunjhunwala and JP Morgan's Alan J Levine.

A statement from the two companies said,''JP Morgan Securities arranged the syndication of about $325 million of senior debt, which has priority in repayment over other kinds of debt.''

A consortium of banks contributed to the financing as well: Bank of America, City National Bank, Wells Fargo, Comerica, Union Bank of California, SunTrust, California Bank and Trust and Israel Discount Bank.

Talking about the deal, Anil Ambani, ADAG's chairman, has said that the partnership with Spielberg and Snider forms the cornerstone of his Hollywood strategy that would allow the famous Hollywood studio to make more of the great films it is renowned for.