Lion confirms plans for one-time dividend

Move would mean a $1.39 bil windfall for Kerkorian

MGM management confirmed Tuesday studio’s plans to recommend a one-time dividend of $8 a share (Daily Variety, March 30).

A brief Lion statement said only that directors will be asked to approve the plan after a related credit facility has been buttoned up by the end of April. But it’s expected the MGM board will vote on the dividend around the time that the Century City-based company holds its annual meeting in L.A. in early May.

The dividend would be paid to shareholders of record by a date in May yet to be designated.

Speculation over reasons for the move — which would mean a $1.39 billion windfall for 74% stakeholder Kirk Kerkorian — has covered a host of scenarios. Some say plan marks a first step toward taking the studio private while others suggest it’s simply a move to deliver a return-on-investment to MGM’s majority shareholder.

Lion plans to refinance its current credit facility in the process, using studio’s longtime bankers JPMorgan and Bank of America to construct a new $2.4 billion financing. About $2 billion of the refi has been tagged for the shareholder dividend.

Studio’s confirmation of its dividend plan came after the close of market trading, with MGM shares unchanged on the session at $17.48. But the stock is likely to surge today, as shares traded higher in after-hours activity.

More Scene

  • LOS ANGELES, CA - MAY 19:

    'Stranger Things' Team Offers Glimpses Into Season 3 at Netflix FYSee

    MGM management confirmed Tuesday studio’s plans to recommend a one-time dividend of $8 a share (Daily Variety, March 30). A brief Lion statement said only that directors will be asked to approve the plan after a related credit facility has been buttoned up by the end of April. But it’s expected the MGM board will […]

  • 'Pose' TV show premiere

    Ryan Murphy Wants 'Pose' to Be 'Uplifting' for LGBTQ Community in Trump Era

    MGM management confirmed Tuesday studio’s plans to recommend a one-time dividend of $8 a share (Daily Variety, March 30). A brief Lion statement said only that directors will be asked to approve the plan after a related credit facility has been buttoned up by the end of April. But it’s expected the MGM board will […]

  • DISNEY CHANNEL - "Disney Channel GO!

    Disney Channel Stars Meet With Fans at First Ever Fan Fest

    MGM management confirmed Tuesday studio’s plans to recommend a one-time dividend of $8 a share (Daily Variety, March 30). A brief Lion statement said only that directors will be asked to approve the plan after a related credit facility has been buttoned up by the end of April. But it’s expected the MGM board will […]

  • Sweet Spots Post-Cannes Retreats: Portugal, Provence

    Sweet Spots for Post-Cannes Retreats: Portugal, Provence and London

    MGM management confirmed Tuesday studio’s plans to recommend a one-time dividend of $8 a share (Daily Variety, March 30). A brief Lion statement said only that directors will be asked to approve the plan after a related credit facility has been buttoned up by the end of April. But it’s expected the MGM board will […]

  • Debra Birnbaum, Liz Flahive, Carly Mensch,

    Women of Netflix, Gabrielle Carteris on the Need for Female Mentorship in TV

    MGM management confirmed Tuesday studio’s plans to recommend a one-time dividend of $8 a share (Daily Variety, March 30). A brief Lion statement said only that directors will be asked to approve the plan after a related credit facility has been buttoned up by the end of April. But it’s expected the MGM board will […]

More From Our Brands

Access exclusive content