Finance: It won’t affect the new studio’s...

Finance: It won’t affect the new studio’s financing, but Chemical Bank has been fighting an uphill battle trying to sell part of its $1-billion loan commitment to DreamWorks SKG, the studio being formed by Steven Spielberg, Jeffrey Katzenberg and David Geffen. Chemical has been hoping to sell part of the loan to other banks to spread its risk, but sources say some banks are balking at the generous loan terms being given DreamWorks, notably the 10-year term and an interest rate that is lower than they would like. Bank trade publications have put that rate at half a percentage point above the London inter-bank offered rate, or LIBOR--terms more typical for established companies than start-ups. Regardless of how successful Chemical is at selling parts of the loan, DreamWorks will still get its money, since the giant New York bank has pledged that the funds will be available. If Chemical is unable to sell parts of the loan, bankers say, then it assumes all of the risk itself. Today is the deadline for banks to join Chemical’s loan, sources say.