Bond Studio MGM Raises $300 Million in New Loan -
27th June 2014
Inc. (MGMB), the independent film studio that
produces the James Bond films, raised $300 million
in new funds, $100 million more than initially sought.
Chase & Co. (JPM) and Goldman Sachs Group
Inc. arranged the six-year, 5.13 percent fixed-rate
loan, Beverly Hills, California-based MGM said today
in an e-mailed statement.
additional financial capacity further strengthens
our balance sheet and positions us to capitalize on
the opportunities in front of us, Chairman and
Chief Executive Officer Gary Barber said in the statement.
and television companies are benefiting from the lowest
rates since the financial crisis as banks that retreated
from movie lending have returned to compete with stalwarts
loan had originally been expected to price at around
5.5 percent to 5.75 percent, a person familiar with
the matter said on June 19. MGM also has a $665 million
revolving credit facility outstanding, which wasnt
drawn as of March 31, according to financial statements
posted on its website.
November, the studio joined with Danjaq LLC, the longtime
Bond films producer, to acquire all rights to the
fictional British secret agent held by the estate
and family of the late screenwriter Kevin McClory.
accord ended legal and business disputes that have
arisen over 50 years, the parties said at the time.
films dating back to Dr. No in 1963 have
grossed $1.91 billion in U.S. theaters, according
Office Mojo, an industry researcher. The most
recent, the 2012 release Skyfall, took
in $1.1 billion in worldwide ticket sales and $304.4
studio also owns rights to The Hobbit
emerged from bankruptcy in December 2010 and in July
2012 filed for a possible initial public offering
after spurning a takeover bid from Lions Gate Entertainment
Corp. The studio today declined to comment on the
of MGM Holdings Inc., which trade on a limited basis
over the counter, were last quoted at $78.25 on June
11, according to data compiled by Bloomberg. The company
had 53.8 million shares outstanding as of March 31,
according to the first-quarter earnings report.