In Hollywood, Credit Remains, at Least for a Few Big Names

LOS ANGELES — Hollywood, apparently, is still in the money.

The crisis on Wall Street is roiling companies around the globe, but bank-financed credit is continuing to flow into the movie business, albeit on a much more moderate basis.

On Friday, as government leaders cobbled together a historic rescue of the American financial system, Media Rights Capital, one of Hollywood’s most prominent independent production companies, closed on a $350 million revolving credit fund led by JPMorgan Chase and Comerica. The financing effort began just six weeks ago, said Asif Satchu, co-chief executive of the film company.

“In a credit climate that on its surface has completely shut down, this deal proves that there is money available,” said Marni Wieshofer, a senior vice president of Media Rights Capital. Mr. Satchu added that “banks are still in the business of putting money to work; they’re just making many fewer bets.”

The new financing will be used to expand the production company deeper into film, television and digital projects and will be used in conjunction with the company’s initial $425 million capitalization. Media Rights Capital has helped to finance such films as “Babel,” starring Brad Pitt, and is behind a high-profile digital video collaboration between Seth MacFarlane, the creator of the “Family Guy” television series, and Google.

The deal follows the announcement last week that Steven Spielberg had secured $700 million in credit through JPMorgan to start a new production company in partnership with Reliance Big Entertainment of India.

Movie companies have looked to complex financing deals with private money in the last two years to offset risk and help cover sharply higher production costs. But in recent months that pipeline has slowed to a trickle because of the credit meltdown, with even the likes of Paramount Pictures becoming unable to find acceptable financing terms.

Last week, as the economic crisis escalated, Hollywood started to fret anew. But the Media Rights Capital deal, in partnership with Mr. Spielberg’s money, indicates that film companies considered to be low risk can continue to tap the credit market.