×
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.

More Film

  • '2019 Oscar Nominated Short Films: Live

    Film Review: ‘2019 Oscar Nominated Short Films: Live Action’

    The Academy skewed dark in its choice of live-action shorts this year, selecting four films to slit your wrists by — each one featuring child endangerment in a different form — and a fifth, about a diabetic on her death bed, that finds a glimmer of uplift at the other end of life. If that [...]

  • How the 'Rich Eisen Show' Mixes

    How the 'Rich Eisen Show' Mixes Sports and Showbiz in an Entertaining Mix

    Walking through the El Segundo studio where veteran sportscaster Rich Eisen tapes his daily “Rich Eisen Show,” the sheer density of sports memorabilia is overwhelming — everything from game balls to jerseys, gear, autographs and uncountable photos are crammed onto every inch of wall and desk space. But step into Eisen’s dressing room, and the [...]

  • Yorgos Lanthimos

    Film News Roundup: 'The Favourite' Director Yorgos Lanthimos Boards Crime Drama

    In today’s film news roundup, Yorgos Lanthimos has set up a crime drama, “Here Lies Daniel Tate” is being adapted, and Donna Langley becomes a member of the USC film school board. DIRECTOR HIRED “The Favourite” producer-director Yorgos Lanthimos has signed on to write and direct crime drama “Pop. 1280,” an adaptation of Jim Thompson’s [...]

  • Brody Stevens Dead

    Comedian Brody Stevens Dies at 48

    Prominent Los Angeles comedian Brody Stevens died Friday in Los Angeles, Variety has confirmed. He was 48. “Brody was an inspiring voice who was a friend to many in the comedy community,” Stevens’ reps said in a statement. “He pushed creative boundaries and his passion for his work and his love of baseball were contagious. [...]

  • Contract Placeholder Business

    Hollywood Agents Blast Writers Guild Over New Proposals

    The war between the Writers Guild of America and Hollywood agents has escalated as the two sides battle over the rules on how writers are represented. The latest volley emerged Friday from Karen Stuart, executive director of the Association of Talent Agents, who accused WGA leaders of misleading its members and asserted that the guild [...]

  • Xavier Legrand Custody

    Cesar Awards: Xavier Legrand’s ‘Custody’ Wins Best Film

    Xavier Legrand’s feature debut “Custody,” a tense portrait of a family torn by domestic violence, won best film, actress (for Lea Drucker), and original screenplay at the 44th Cesar Awards, which took place at the Salle Pleyel in Paris. The awards are France’s highest film honors. “Custody,” which marks Legrand’s follow up to his Oscar-nominated [...]

  • Editorial use only. No book cover

    'Crazy Rich Asians,' 'Late Show With Stephen Colbert' Win Publicity Campaign Awards

    Hollywood publicists have selected “Crazy Rich Asians” as the top movie publicity campaign for 2018 and “The Late Show With Stephen Colbert” as the best television campaign. Warner Bros.’ “Crazy Rich Asians” topped the campaigns for Disney’s “Black Panther,” Fox’s “Bohemian Rhapsody,” Paramount’s “A Quiet Place,” Sony’s “Spider-Man: Into the Spider-Verse,” and Universal’s “Halloween” for [...]

More From Our Brands

Access exclusive content