×
You will be redirected back to your article in seconds

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

  • Harvey Weinstein, Katie Holmes, Taylor Swift'The

    Taylor Swift Downplays Association With Harvey Weinstein

    Taylor Swift’s association with disgraced movie mogul Harvey Weinstein was among the topics the singer addressed in a revealing new interview with The Guardian. Weinstein held producer credits for the movies “One Chance” and “The Giver,” both of which featured Swift — in the former, a song, and in the latter, a supporting role. She [...]

  • Breaking Bad Movie

    'Breaking Bad' Movie: Watch the First Teaser for 'El Camino'

    In case you hadn’t heard, Emmy-winning drama “Breaking Bad” is cooking up a movie sequel. On Saturday, after details of Netflix’s “Breaking Bad” project quietly leaked online, the streaming giant issued the first teaser for “El Camino: A Breaking Bad Movie,” which will be released on October 11. Starring Aaron Paul as Jesse Pinkman, the [...]

  • Samara Weaving and Adam Brody Big

    'Ready or Not': That Time Samara Weaving Hit Andie MacDowell in the Face

    Samara Weaving didn’t mean to hurt Andie MacDowell, but she did just that while they were rehearsing for their new horror dark comedy “Ready or Not.” “I hit Andie MacDowell in the face by accident,” Weaving says on this week’s episode of “The Big Ticket,” Variety and iHeart’s movie podcast. “It was horrible. It was [...]

  • Aracne

    Chile’s Sanfic, Mexico’s Morbido Fest Pact to Promote Latino Horror (EXCLUSIVE)

    Mexican horror festival Morbido and Chile’s Santiago Intl. Film Festival (Sanfic) have agreed on a long-term collaboration intended to strengthen the genre film industry in Chile and across Latin America. This partnership will see Morbido representatives attend the Sanfic industry section each year to aid in the promotion of horror projects and advise those projects [...]

  • Tom Holland'Spider-Man: Homecoming' film premiere, Arrivals,

    Tom Holland Addresses Spider-Man’s Studio Divorce at D23: ‘I Love You 3000’

    British actor Tom Holland showed face on the main stage at D23 on Saturday, in the thick of an ugly studio battle over the rights to his iconic Marvel character Spider-Man. Headlines have been rolling in for days about the contentious battle for the cinematic future of the hero, after Sony Pictures became unwilling to [...]

  • Soul Movie

    Pixar's 'Soul' Announces Voice Cast: Jamie Foxx, Tina Fey to Star

    Disney debuted a first look at upcoming Pixar film “Soul” at the D23 expo in Anaheim, Calif. and announced its star-studded voice cast. “Soul” imagines that every person on earth comes pre-installed with a soul formed and perfected in a cosmic realm. Jamie Foxx will play a middle-school music teacher on earth who dreams of [...]

  • Emma Stone Variety Actors on Actors

    First Look at Emma Stone in Disney's Live-Action 'Cruella' Drops

    Emma Stone’s Cruella de Vil is significantly more punk rock than her animated counterpart. Stone appeared via video message to debut the first look of the titular character in Disney’s “Cruella” at D23 on Saturday, also revealing that it will take place in the punk rock era of the 1970s. In the first photo, Stone [...]

More From Our Brands

Access exclusive content