MGM IPO Projected For June
The Metro-Goldwyn-Mayer lion may be roaring on Wall Street by June, according to the Hollywood Reporter. The 88-year-old company is about to close $650 million in bank financing that will allow it to pay its current debt to Sony and Warner Bros.—borrowed to make “Skyfall” and “The Hobbit: An Unexpected Journey.” When the movies were created, MGM was emerging from bankruptcy and needed financing toThe financing to produce them. The new credit, which is at a lower interest rate, will also allow the company to continue paying for operations, movie and TV productions.
Thanks to the two blockbuster films, MGM is in a better position to go public in the coming months. “The Hobbit” has already grossed more than $800 million worldwide, and “Skyfall” has earned more than $1 billion. Both films are still showing in theaters and could continue on the big screen for some time if they are nominated for awards. They also have potential of additional revenue from the home video market and electronic media.
MGM was initially expected to go public last year, but the IPO was pushed to 2013 so the company could gain its financial bearings. The new financing deal is led be JPMorgan, with Bank of America, Union Bank, Wells Fargo, Sun Trust, Royal Bank of Canada, One West Bank, City National Bank and Citi also on board.
[Image via MGM/Facebook]
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