DBRS Assigns BBB (high) Rating to Dune Entertainment III LLC (“Dune III”) Senior Revolving Credit Facility

DBRS assigns a BBB (high) rating to the $415 Million Senior Revolving Credit Facility for Dune III which closed August, 2007. The facility is currently funded by a syndicate of banks, led by Joint Book Runners Societe Generale Americas Securities, LLC and Dresdner Kleinwort Securities LLC. The Senior Facility has a Stated Maturity Date of August, 2014.

The Senior Facility is used by Dune III to fund its investment share of the negative cost of completed motion pictures in partnership with 20th Century Fox Film Corporation. Dune III has the ability to draw under the Facility to finance its acquisition of film rights. To date, investments in 33 films have been financed via equity proceeds, draws under the Facility and cash flows from previously financed films.

Credit enhancement for the Senior Facility exists principally in the form of over-collateralization created by the film rights acquired to date and a reserve account. The debt structure provides the Senior Facility with significant protection since the equity investors are locked out of any distributions until the Senior Facility has been paid in full.

DBRS will monitor the performance of the ratings on a quarterly basis.

Note:
All figures are in U.S. dollars unless otherwise noted.

This is a Structured Finance rating.

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.

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