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MGM repaid an $850 million loan while enhancing its debt capital structure to $2.5 billion, the film and TV company said Wednesday.
MGM said it now has a $1.7 billion five-year revolving credit facility, a new $400 million seven-year loan and a new eight-year loan, arranged by J.P. Morgan with a syndicate of lenders.
“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 CFO Kenneth Kay.
MGM has been run by an “Office of the CEO” since Gary Barber was ousted in March. In its most recent quarter, it posted just $858,000 in net income, down from $35 million a year earlier, with part of the decline owed to a $15.4 million severance paid to Barber.
MGM owns one of the more impressive libraries in Hollywood and has had mixed results with newer titles, including remakes of Ben Hur, The Magnificent Seven and Death Wish.
On the TV side, MGM has a slew of hits including Vikings, The Handmaid’s Tale and several reality shows from Mark Burnett, such as Survivor and Shark Tank.
Last year, MGM purchased Epix Entertainment, and the channel accounted for about $100 million of MGM’s $272 million in revenue in its most recently reported quarter.
