MGM Closes on $300 Million Loan, Touts Wall Street Support

'Skyfall' highest grossing film In Australia

Metro-Goldwyn-Mayer has closed on a six-year $300 million second lien term loan agreement with a consortium of lenders.

Chairman-CEO Gary Barber touted the loan as a sign of Wall Street’s confidence in MGM, which emerged from a pre-packaged bankruptcy in late 2010.

“We are delighted with the overwhelming support from the financial community and their confidence in MGM,” he said. “This additional financial capacity further strengthens our balance sheet and positions us to capitalize on the opportunities in front of us.”

MGM said Thursday that the new loan was oversubscribed, enabling the company to increase the size from the originally anticipated amount of $200 million. The loan is at a fixed rate of 5.125% and was arranged by J.P. Morgan Securities LLC and Goldman Sachs.

MGM said the loan will be used for general corporate purposes and provides the studio with further flexibility to execute on its business plan and take advantage of opportunities.

In March, MGM Holdings reported a 97% jump in 2013 earnings and an 11% gain in revenues, citing “Skyfall,” its two “Hobbit” films, and TV shows “Vikings” and “Teen Wolf.”

The privately held studio announced earnings of $122 million for last year — nearly double the $62 million from 2012,  excluding the one-time benefit of asset sales. Revenues hit $1.53 billion.

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Film News from Variety