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Prints and Advertising Financing

Prints and Advertising (P&A) comes into play as film production wraps and the film moves into post production, in which editing occurs and special effects are added – after which distribution transpires. Three months before his/her film has undergone the final edit, a Filmmaker will come to us and seek P&A financing. The placement of the P&A through our group sometimes allows a partial repayment to the equity investors. P&A is the last monies in and the last monies out. When our fund finances P&A we normally expect a 20% coupon and a maximum of 12 months to repay principal and coupon. After P&A recoup the fund is willing to incentivize the Producers/Talent residual pool. The Distributor will normally take 8–12.00% at the placement of the P&A contract by the Fund, at which time the film is fairly well defined and talent is in place; also, the expected ticket volume is much easier to forcast at that juncture.

The P&A finance agreement will normally cap distributor reimbursable expenses per film at a level below $300,000 per film. Minimum Guarantees can not be paid out of P&A financing. Guild residuals will be honored as part of P&A.

The Fund sometimes splits the distribution revenues between the Fund and the Production Company and its investors on a 50/50 basis after the Fund recoups its investment. The financing of the P&A then allows the Production Company to “pre-sale” its foreign market sales. The domestic sales are tied to paying back the P&A. We discourage the pre-sale of domestic revenues as it is a debt that subordinates all the investors and the residual pool. Pre-sales are almost impossible to obtain without a firm commitment to P&A in place. This is a successful concept with which the Fund is currently working in affiliation with major studios.

Distributors Approved by the Fund

The Fund can only release distribution financing to the following certified and reputable distribution companies. These companies have a proven track record and the required infrastructure to professionally and properly distribute film releases in the domestic US, Canada and Mexico. Just as important as the distribution experience and infrastructure is the ability of the Fund to audit and track valid ticket sales and be able to re capture our investment. Thus is the reason we limit distribution financing to the following companies:

Warner Bros.  Buena Vista  Universal Sony / Columbia  Lionsgate 
20th Century Fox Paramount IFC Sony Classics FilmDistrict
Open Road Films Fox Searchlight Focus Features CBS Films UTV Communications
Roadside Attractions A24 Eros  





The fund does not normally subscribe to platform releases and focuses primarily on theatrical releases of 1,500 screens or more.

Typical P&A Distribution timeline for theatrical release of a movie 

Typical Pro Forma P&A Budget and Use of Funds

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