J.P. Morgan, Goldman Sachs Arrange MGM Term Loan
Metro-Goldwyn-Mayer announced it closed on a $300 million second lien term loan agreement with a consortium of lenders. The new loan was several times oversubscribed, which enabled the company to upsize from the originally anticipated amount of $200 million. The loan, which spans six years at a fixed rate of 5.125%, was arranged by J.P. Morgan Securities and Goldman Sachs.
The loan will be used for general corporate purposes and provides MGM with further flexibility to execute on its business plan and take advantage of opportunities as the company moves forward.
“We are delighted with the overwhelming support from the financial community and their confidence in MGM,” said MGM Chairman and CEO Gary Barber. “This additional financial capacity further strengthens our balance sheet and positions us to capitalize on the opportunities in front of us.”