×
You will be redirected back to your article in seconds

MGM Hikes Debt Capital to $2.5 Billion

Metro-Goldwyn-Mayer Inc. has increased its debt capital structure to $2.5 billion, the studio announced Wednesday.

The facility includes a $1.7 billion five-year revolving credit facility, a new $400 million seven-year term loan and a new eight-year second lien term loan and repaid the entire outstanding balance on its prior $850 million term loan.

Arranged by J.P. Morgan with a syndicate of lenders, MGM said the credit facility lowers MGM’s borrowing rate to the London interbank offered rate (LIBOR) plus 1.75% on the revolving credit facility, extends the tenor of its overall borrowings, augments certain other terms from the company’s prior credit agreement, and provides MGM with significant financial flexibility to continue executing on its strategic growth initiatives.

“The speed of execution, enhanced terms and improvements to the structure of our credit facility are reflective of MGM’s solid financial position and excellent relationships with the financial community,” said Kenneth Kay, MGM’s chief financial officer. “I would like to thank all of our long-standing and new lenders for their tremendous support of MGM. This transaction is an important milestone for the company and will support the continued growth trajectory of MGM into the future.”

David Shaheen, head of entertainment industries for J.P. Morgan’s Corporate Client Banking Group, added, “We’re thrilled to work with MGM as it continues to grow in a dynamic industry led by a strong management team and with ongoing support from the banking community.

The announcement comes a month after MGM Holdings agreed to pay $260 million to former CEO Gary Barber in exchange for his equity stake and a three-year standstill agreement. The exec was fired in March after he ran afoul with Kevin Ulrich, chairman-CEO of MGM majority owner Anchorage Capital Group and the head of the studio’s board, over their visions for the future.

MGM is being run by a management team of senior executives following the firing of Barber. The executives announced two weeks after the ouster that they were operating under a newly created and christened “Office of the CEO.”

MGM’s upcoming movie slate includes “Operation Finale,” “Creed 2,” “The Addams Family,” and the untitled 25th “James Bond” movie. Reese Witherspoon recently agreed to reprise her role as Elle Woods in “Legally Blonde 3.” MGM’s television operations include “The Handmaids Tale” and “The Voice.”

More Film

  • France's Investment in Movies Plummeted in

    France's Film Production Levels Remained High in 2018, But Local Investment Plummeted

    While the volume of production in France remained high with 300 films made in 2018, investment in local films dropped by 15.2% to €1.12 billion ($1.26 billion), hit by the sharp decline in financing from traditional distribution deals and TV channels. Among the 300 films produced last year, 237 were French-majority films and 63 French-minority [...]

  • Unicorn Store Trailer

    Watch the First Trailer for Brie Larson's Directorial Debut, 'Unicorn Store'

    Brie Larson is seeking salvation from Samuel L. Jackson in Neflix’s first trailer for her directorial debut, the offbeat comedy-drama “Unicorn Store.” Larson is portraying a lonely 20-something dreamer who’s been kicked out of art school. She’s forced to move back home with her parents and take a temp job at a PR agency. But [...]

  • Patti Rockenwagner

    Chief Brand Officer Patti Röckenwagner Leaves STX Entertainment (EXCLUSIVE)

    Patti Röckenwagner is leaving STX Entertainment where she has served as the company’s chief brand officer. She announced her departure in a memo to staff, in which she said she was departing for “another opportunity.” The exit is an amicable one. Röckenwagner joined STX in 2016 as its chief communications officer before being promoted to [...]

  • Gabrielle Union

    10 Things We Learned at Variety’s 2019 Entertainment Marketing Summit

    Variety’s 2019 Entertainment Marketing Summit, which brought top execs to Hollywood’s NeueHouse on Thursday, covered considerable ground. From cutting through the noise in an oversaturated media landscape to welcoming exciting technology like virtual reality, industry veterans offered insight into what to expect from the marketing world in coming years. Here are 10 things we learned [...]

  • Orange Studio, OCS Join Forces On

    Orange Studio, OCS Join Forces on Flurry of High-Profile Series

    Following “The Name of the Rose”(pictured) and “Devils,” France’s Orange has unveiled four internationally-driven series projects as part of its commitment to step into premium original shows with its film/TV division Orange Studio and pay TV group OCS both of board. Currently in development, the social western “Cheyenne & Lola,” the dance-filled workplace drama “The [...]

  • 'This Isn’t Spinal Tap': Dishing the

    'This Isn't Spinal Tap': Dishing the Dirt on Motley Crue's Surprisingly Dark Biopic

    The new, eagerly awaited Motley Crue biopic, based on Neil Strauss’ best-selling 2001 book, “The Dirt: Confessions of the World’s Most Notorious Rock Band,” premieres today on Netflix after a seemingly endless 13 years in development hell. Those anticipating “a fun ‘80s music movie,” as Crue bassist Nikki Sixx puts it, will inevitably be stunned [...]

  • Doppelgänger Red (Lupita Nyong'o) and Adelaide

    Box Office: Jordan Peele's 'Us' Nabs $7.4 Million on Thursday Night

    Jordan Peele’s horror-thriller “Us” opened huge with $7.4 million on Thursday night in North America. The figure easily topped Thursday preview numbers for “The Nun” at $5.4 million and “A Quiet Place” at $4.3 million and nearly matched “Halloween” at $7.7 million. Projections for Universal’s “Us,” Peele’s much-anticipated follow-up to 2017’s “Get Out,” have been in [...]

More From Our Brands

Access exclusive content