MGM closed a $2.5 billion credit facility comprising a five-year $1.7 billion revolving credit facility. a new $400 million seven-year term loan and a $400 million eight-year term loan.
J.P. Morgan served as arranger for the lender syndicate.
Concurrently, the company repaid an $850 million loan.
“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 CEO 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.
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.
