This probably deserves its own thread, but was not sure if it was appropriate in this forum.
This is great news for the industry...
MGM COMEBACK! Exclusive Interview About New $500M Revolving Credit Facility To Retire Debt & Make TV/Movies
In an exclusive interview after months of near public silence, Gary Barber and Roger Birnbaum just told me that MGM is “definitely a buyer and a significant buyer in creating content”. This is great news for Hollywood which needs more buyers in the entertainment marketplace. What’s more this is a stunning development that MGM which wwas sent into bankruptcy by crushing debt now can emerge free of all bank debt. And that Barber and Birnbaum accomplished paying off the $325M term loan in just one year of what was supposed to be a 5-year time frame. Now the pair plan to grow MGM.
“The financial community has now lent its support to a company that was bankrupt one year ago,” they told me. “Our plan of reorganization set out objectives, which all were achieved in a time frame quicker than anyone expected. That allowed us to pay off our 5-year term loan in one year. It was a lot of hard work. But the fact is MGM has not lost any liquidity. We’ve taken a fixed component of debt off our balance sheet and MGM today has no bank debt. Those days of paying through the nose are gone.
“Not only have we paid off the debt but we have a significant amount of cash on the balance sheet and we now have a full untapped revolving credit facility. The company is now completely unlevered with the ability to explore any opportunities. We have the currency to acquire assets to grow MGM. When we came into the company there were not a lot of project in developments. We started from scratch, and now we have a very interesting slate of pictures. Obviously Bond and The Hobbit led us into this new era. Now that we’ve got more buying power, people may come to us first so we won’t be left at the bottom of the barrel.