Metro-Goldwyn-Mayer Inc. announced the upsizing and enhancement of its debt capital structure to $2.1 billion. The facility includes a $1.0 billion five-year revolving credit facility (plus an incremental $250 million optional accordion) and a new $850 million five-year Term Loan A.  Arranged by J.P. Morgan Chase with a syndicate of lenders, the credit facility lowers MGM’s borrowing rate to LIBOR plus 2.00%, augments certain other terms from the company’s prior credit agreement, and provides MGM with significant financial flexibility to continue executing on its strategic growth initiatives.

The credit facility was oversubscribed by more than 50% and the new capital facilitates MGM’s acquisition of the 80.9% aggregate membership interests in EPIX held by Viacom, Paramount and Lionsgate for approximately $1 billion.  MGM’s full acquisition of EPIX also closed today.

“The speed of execution, favorable terms and flexible structure of our credit facility, which was substantially oversubscribed, is indicative of MGM’s solid financial position and strong relationships with the financial community.” said Gary Barber, MGM’s Chairman and Chief Executive Officer.  “I would like to thank all of our lenders for their tremendous support of MGM and our acquisition of EPIX.  This transformative transaction is an important milestone in the continued growth trajectory of MGM.”

“The overwhelming support from MGM's financing syndicate is a testament to the quality of MGM's management team and strategy," commented David Shaheen, Head of J.P. Morgan's Entertainment banking team.  "This transaction builds on the continued success the Company has achieved over the last several years.”