Boosted by James Bond, MGM to announce $650 mln debt deal

Fri Feb 1, 2013 4:20am IST

The headquarters of the MGM movie studio is pictured in Los Angeles November 12, 2007. REUTERS/Fred/Files

The headquarters of the MGM movie studio is pictured in Los Angeles November 12, 2007.

Credit: Reuters/Fred/Files

Related Topics

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

(Reuters) - MGM, the studio behind the James Bond movie franchise, will close a $650 million refinancing of its debt on Friday, reducing the likelihood that the filmmaker will file a contemplated initial public offering in the next few months.

MGM, which emerged from bankruptcy in 2010, will use the debt to replace its existing $500 million credit line and to repay studios that have advanced it funds for joint production on films such as "Hobbit: An Unexpected Journey", which was released in movie theaters on December 14 date and has sold $294.1 million of tickets in the U.S. and Canada.

The studio, which produced last year's blockbuster James Bond film "Skyfall" with Sony's (6758.T) Columbia studio, is taking advantage of sharply lower interest rates to pay repay both Sony and Warner Brothers TWCENT.UL, with whom it produced the "Hobbit" film, according to a person with knowledge of the impending transaction.

MGM is also contemplating making new media acquisitions or buying film projects as it continues to ramp up its production activities, according to Variety, which first reported the impending refinancing.

Studio spokeswoman Susan Arons had no comment.

MGM Holdings, the studio parent, said in July that it had filed draft registration documents with the Securities and Exchange Commission for a public offering but has since then taken no action despite published reports that it would file before the November release of "Skyfall."

In July, the board also purchased billionaire investor Carl Icahn's 25 percent stake for $590 million, paying $33.50 a share and establishing a market value of $2.4 billion for the company.

The studio's board is made up of representatives of hedge fund investors that include Highland Capital Management and Solus Alternative Asset Management and Anchorage Capital Group. The investors may contemplate an IPO in the future, according to the person.

(Reporting By Ronald Grover; Editing by Bernard Orr)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Monsoon Forecast

Monsoon Forecast

South Asia monsoon seen below-average to average in 2014 - WMO.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Facebook Earnings

Facebook Earnings

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

DLF Shares

DLF Shares

DLF slides 3 percent, underperforms rivals.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage