Metro-Goldwyn-Mayer Inc. (“MGM”) announced the enhancement of its capital structure with the completion of a newly structured $1.0 billion five-year revolving credit facility (“RCF”) arranged by J.P. Morgan Chase with a syndicate of lenders.  This RCF replaces MGM’s existing $665 million RCF, lowers its borrowing rate to LIBOR plus 2.25%, and augments certain other terms within the agreement.  The Company also prepaid its $300 million second lien term loan, resulting in expected interest savings of approximately $50 million over its remaining term.

“I am truly honored and humbled by the vote of confidence in MGM demonstrated by the syndicate of lenders that supported this credit facility, many of whom were part of our prior facility,” said Gary Barber, MGM’s Chairman and Chief Executive Officer.  “The size and structure of this new facility are indicative of MGM’s strong financial position and bright future, and will provide us with the financial flexibility to continue executing on our strategic growth initiatives.”

“Gary and the strong management team at MGM have established a tremendous track record of disciplined growth and success,” said David Shaheen, Managing Director of the Entertainment Industries Group for J.P. Morgan Chase.  “We are very pleased to have assisted MGM in securing new capital to support their business initiatives and the additional strategic opportunities ahead of them.”

Metro-Goldwyn-Mayer (MGM) is a leading entertainment company focused on the production and global distribution of film and television content. The Company owns one of the world’s deepest libraries of premium film and television content.  In addition, MGM has investments in domestic and international television channels.