MGM Secures $500M Loan to Expand Film, TV

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MGM headquarters are shown March 13, 1996 in Santa Monica.
MGM headquarters are shown March 13, 1996 in Santa Monica.

(Reuters) -- Metro-Goldwyn Mayer said its lenders agreed to loan the studio $500 million to retire debt it took on when it emerged from bankruptcy about a year ago and to expand its film and TV production.

The revolving credit facility replaces a term loan and smaller revolving facility the studio received as part of a pre-packaged bankruptcy in which its lenders exchanged $4 billion in outstanding debt for equity valued at about $2 billion.

The studio also hired Gary Barber and Roger Birnbaum, who ran the production company, Spyglass Entertainment, to operate the company.

(Reporting By Ronald Grover; editing by Andre Grenon)

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