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

   

(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

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Waning Enthusiasm

Waning Enthusiasm

Markets' post-election enthusiasm lost on consumers.  Full Article 

Monsoon Revives

Monsoon Revives

Monsoon revival keeps rain above average   Full Article 

Banking Sector

Banking Sector

Banks not allowed to trade in bonds for infra lending - RBI.  Full Article 

Just Not Enough

Just Not Enough

Amazon's smartphone fails to kindle a "Fire" among reviewers.  Full Article 

Rising Market Value

Rising Market Value

Facebook goes express to mega-cap status  Full Article 

Reuters India Mobile

Reuters India Mobile

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