Paramount has extended its production deal with Animal House producer Ivan Reitman’s Montecito Picture Co through 2012.
The deal gives Paramount a first look at Montecito productions and provides them with a co-financing option on those titles through Montecito’s Cold Spring Pictures, which was set up in 2006 with Merrill Lynch.
Evidently, Merrill’s commitment to Cold Spring hasn’t been hurt by the bank’s absorption into BofA, unless another bank is administering this deal like JP Morgan is with Merrill’s 2007 United Artists deal.
The deal is a boon for Paramount, which needs financing partners, like all studios do, but was recently unable to reach a slate-financing agreement with Deutsche Bank. Speaking of Wall-Street financing deals, Merrill’s involvement in Melrose Partners, a poorly performing slate agreement with Paramount that has since devolved into a lawsuit, apparently hasn’t hindered the bank’s relationship with the studio.