×

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

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.

Popular on Variety

More Film

  • Igo Kantor

    Igo Kantor, Producer and Post-Production Executive, Dies at 89

    Igo Kantor, whose Hollywood career took him from Howard Hughes’ projection room to supervising post-production on “Easy Rider” and producing B-movies like “Kingdom of the Spiders” and “Mutant,” died Oct. 15. He was 89. Kantor, who was born in Vienna and raised in Lisbon, met “Dillinger” director Max Nosseck on the ship to New York. [...]

  • The Lion King

    Average Movie Ticket Price Falls 4% in Third Quarter of 2019

    Average ticket prices for the third quarter have dropped 4% to $8.93, down from Q2’s $9.26, the National Association of Theatre Owners announced today. However, compared with the third quarter of 2018, ticket price has risen 1.1% from $8.83. The summer box office is down 2.13% from 2018, though the third quarter box office is [...]

  • Tilda Swinton to Preside Over The

    Tilda Swinton to Preside Over Marrakech Film Festival

    Tilda Swinton, the iconoclastic British actress and producer, is set to preside over the 18th edition of the Marrakech International Film Festival, succeeding to American director James Gray. Swinton, who won an Oscar and a BAFTA award for best supporting actress for “Michael Clayton,” has been leading an eclectic acting career. She has collaborated with [...]

  • The King Netflix

    Middleburg Film Festival Brings Hollywood to Virginia

    For the last seven years, audiences have flocked to the Middleburg Film Festival. Running October 17th – 21st, and situated in the wine-country hills of historic Middleburg, Virg., the festival usually highlights some of the year’s buzziest titles, and 2019 is no exception. “We’re a smaller festival with fewer overall screenings than other events, so we [...]

  • Kelly McCormick and David Leitch'Fast &

    'Wheelman' Director to Helm 'Versus' From David Leitch, Kelly McCormick (EXCLUSIVE)

    “Wheelman” director Jeremy Rush is in negotiations to helm the action movie “Versus,” with Kelly McCormick and David Leitch producing. Rush will direct the Universal movie from a script penned by “Three Musketeers” scribe Alex Litvak and “American Assassin” writer Mike Finch. Plot details are being kept under wraps, though it will follow the genre [...]

  • Taika Waititi Jojo Rabbit Premiere

    Why Director Taika Waititi Decided to Play Adolf Hitler in 'Jojo Rabbit'

    “Fox Searchlight blackmailed me into doing it,” Taika Waititi told Variety of playing Adolf Hilter in “Jojo Rabbit” at the film’s premiere at American Legion Post 43 on Tuesday night in Hollywood. Staying mum when asked which other actors had been on his wish list to play the role, Waititi explained why he eventually decided [...]

  • ALACARTE_HOME

    Brazil’s Pandora Filmes Readies Country’s First Classic Film Streaming Platform

    Brazilian distribution company Pandora Filmes was founded by André Sturm in 1989 as the country’s first independent distributor of foreign and domestic, classic and contemporary arthouse cinema. Still pushing the envelope three decades later, Juliana Brito is representing the company at this year’s Lumiere Festival, looking for classic film titles to fill out the catalog [...]

More From Our Brands

Access exclusive content