×

MGM Completes $1 Billion Credit Facility

Metro-Goldwyn-Mayer has completed a newly structured $1 billion five-year revolving credit facility arranged by J.P. Morgan Chase with a syndicate of lenders.

MGM, home to the James Bond franchise, made the announcement on Wednesday.

The new funding structure replaces MGM’s existing $665 million revolving credit facility and lowers its borrowing rate to LIBOR (the London Interbank Offered Rate) plus 2.25%, and augments other terms within the agreement. The company also prepaid its $300 million second lien term loan, resulting in expected interest savings of approximately $50 million over its remaining term.

“I am truly honored and humbled by the vote of confidence in MGM demonstrated by the syndicate of lenders that supported this credit facility, many of whom were part of our prior facility,” said Gary Barber, MGM’s chairman and CEO. “The size and structure of this new facility are indicative of MGM’s strong financial position and bright future, and will provide us with the financial flexibility to continue executing on our strategic growth initiatives.”

Privately-held MGM reported in May that first-quarter revenue dropped 15% to $311.3 million and disclosed a slight gain in earnings to $57.1 million from $56.8 million, thanks to increases in TV and home entertainment. MGM profits sky-rocketed 62% to $252 million last year in the wake of a strong performance by Daniel Craig’s “Spectre.”

MGM’s television content saw improvements in the wake of December’s deal for MGM to buy out the remaining 45% interest that Mark Burnett and Hearst Corp held in United Artists Media Group in deals worth $233 million total. MGM licensed new episodes of “Vikings,” “Survivor,” “The Voice,” “Shark Tank,” “Beyond the Tank” and “Lucha Underground” during the first quarter.

“Gary and the strong management team at MGM have established a tremendous track record of disciplined growth and success,” said David Shaheen, managing director of Chase’s Entertainment Industries Group. “We are very pleased to have assisted MGM in securing new capital to support their business initiatives and the additional strategic opportunities ahead of them.”

Spectre,” the 24th James Bond movie, hauled $880 million at the worldwide box office, including $200 million in the U.S. The studio has not yet dated the 25th Bond film and it’s uncertain whether Craig will return to the franchise.

Popular on Variety

More Film

  • Dan Stevens

    Dan Stevens Joins Netflix Comedy 'Eurovision'

    “Legion” star Dan Stevens has joined the cast of Netflix feature “Eurovision,” alongside Will Ferrell, Rachel McAdams and Pierce Brosnan. The British actor, who made his name in “Downton Abbey” and recently finished a three-year run on FX’s “X-Men” spin-off “Legion” from Noah Hawley, will play Alexander Lemtov, a Russian contestant taking part in the [...]

  • THE-SONG-OF-NAMES

    Tim Roth, Clive Owen-Starrer 'The Song Of Names' To Close San Sebastian

    Starring Clive Owen and Tim Roth, Canadian François Girard’s historical drama “The Song of Names” will close the 67th San Sebastian Festival on Sept. 28. World premiering at the Toronto Intl. Film Festival as a Gala Presentation, “The Song of Names” will play out of competition at what will be its international premiere. Hanway Films [...]

  • Dogwoof Boards Venice-Bound Imelda Marcos Doc

    Dogwoof Boards Venice-Bound Imelda Marcos Documentary ‘The Kingmaker’ (EXCLUSIVE)

    Dogwoof has boarded Lauren Greenfield’s “The Kingmaker,” about Imelda Marcos, the former first lady of the Philippines. The hotly anticipated feature doc delves into the disturbing legacy of the Marcos regime and Imelda’s attempts to aid her son’s political career. It will have its world premiere at the Venice Film Festival and then screen at [...]

  • Yao Chen in “Send Me to

    Cheng Cheng Films Nabs North American Rights to China's 'Send Me to the Clouds'

    New York-based distributor Cheng Cheng Films has acquired North American rights to first-time Chinese director Teng Congcong’s comedy drama “Send Me to the Clouds,” starring and produced by A-list actress Yao Chen. The company is planning a theatrical release for fall 2019. “Cheng Cheng has always championed films with strong female leads,” the firm said [...]

  • A White White Day

    Film Movement Brings ‘A White, White Day’ to the U.S. (EXCLUSIVE)

    OSLO  —  New-York based distributor Film Movement has acquired U.S. rights to critically-lauded Icelandic drama “A White, White Day,” today’s opening film at New Nordic Films in Haugesund. In a separate deal, sales agent New Europe Film Sales has closed French-speaking Canada with Funfilm and English-speaking Canada with Game Theory. Hlynur Pálmason’s sophomore pic, “A [...]

  • (from left) Deckard Shaw (Jason Statham)

    Korea Box Office: ‘Hobbs & Shaw’ Topples ‘Exit,’ ‘Roar to Victory’  

    Opening on Wednesday, “Fast & Furious Presents: Hobbs & Shaw” debuted on top of the South Korean box office. Showing on some 1,311 screens nationwide, the UPI release earned $15.1 million from 2.03 million admissions over five days. That included the four-day National Liberation Day weekend. “The Battle: Roar to Victory” remained in second. The [...]

  • Tracy Morgan Netflix stand-up special

    Film News Roundup: Tracy Morgan Joins Eddie Murphy's 'Coming 2 America'

    In today’s film news roundup, Tracy Morgan and Michael Rooker book roles in major movies, and Gravitas buys “Christmas Break-In.” CASTINGS Tracy Morgan has signed on to appear in Eddie Murphy’s “Coming 2 America” sequel as the brother of Lesley Jones’ character. “Hustle & Flow” helmer Craig Brewer is directing the project with Murphy, Kevin [...]

More From Our Brands

Access exclusive content