MGM COMEBACK! With $500M Revolving Credit Facility
LOS ANGELES, CA (February 6, 2012) – Metro-Goldwyn-Mayer, Inc has closed a new $500 million revolving credit facility it was announced today by Gary Barber and Roger Birnbaum, Co-Chairman and Chief Executive Officers of MGM. The financing was provided by a group of banks led by JPMorgan Chase and Deutsche Bank. The syndicate also includes Bank of America Merrill Lynch, Royal Bank of Canada, SunTrust Bank, Wells Fargo, CIT Bank, Union Bank, City National Bank and OneWest Bank.
The credit facility will allow the studio to retire their previous debt while they continue to grow their film and television business, expanding and developing current projects including the films under their partnership with Sony Pictures such as the upcoming “21 Jump Street,” and the latest Bond installment “Skyfall,” as well as the upcoming highly anticipated “The Hobbit: An Unexpected Journey” and “The Hobbit: There and Back Again,” via their partnership with Warner Brothers and “GI Joe: Retaliation” with Paramount. The studio has several other films and television programs in various stages of production and development at this time including films “Robocop,” “Carrie,” “Poltergeist,” and “Punk Farm” and television including “Vikings” and the current “Teen Wolf.”
“A year ago MGM was in bankruptcy and to receive this oversubscribed facility just one year later is proof positive that through careful and efficient business decisions, we have earned the faith of the financial community,” said Barber and Birnbaum. “The operating plan we are employing is working and we are extremely grateful for the vote of confidence from the banks and are increasingly encouraged about the future of our business.”
“The success of this financing further validates investor confidence in the management team and their ability to execute on its business strategy. Market demand was significantly greater than the $500MM issuance, which is a clear indication that the bank market continues to strengthen for the entertainment sector,” said John Miller, Vice Chairman, JPMorgan Chase.
“Co-leadership in this highly attractive financing is Deutsche Bank’s endorsement and continuing support of an exceptionally strong management team led by two true industry experts, Gary and Roger, and the supportive leadership of an exceptional Board. The over-performance in the past year allowed for this improved financing,” said Brian Mulligan, Vice Chairman, Deutsche Bank.
MGM’s restructuring was made effective in December 2010. As part of its exit financing, arranged by JPMorgan Chase, the studio raised $500 million to fund operations, including production of a new slate of films and television series.
