More than a year after it exited bankruptcy, Metro-Goldwyn-Mayer(MGM) has closed a new $500 million revolving credit facility, the studio said on Monday.
The studio plans to use the funding to retire its previous debt and to develop new projects.
The financing was provided by a group of banks led by JPMorgan Chase and Deutsche Bank. Other banks involved include Bank of America Merrill Lynch, Royal Bank of Canada, SunTrust Bank, Wells Fargo, CIT Bank, Union Bank, City National Bank and OneWest Bank.
Also read: MGM Exits Bankruptcy, Barber and Birnbaum Assume Control
MGM exited Chapter 11 in December 2010 under a plan that saw Spyglass Entertainment chiefs Gary Barber and Roger Birnbaum assuming control of the studio. At the time, the company lined up $500 million in exit funding through JPMorgan, which it used to keep the studio running and to help fund its part of production on "The Hobbit."
MGM leadership said that its credit facility was evidence that it had turned a page on a financially troubled chapter in its history.
“A year ago MGM was in bankruptcy and to receive this oversubscribed facility just one year later is proof positive that through careful and efficient business decisions, we have earned the faith of the financial community,” Barber and Birnbaum said in a statement.
Post-bankruptcy, MGM has signed partnerships with Warner Bros. and Sony to produce and fund projects such as "21 Jump Street" and the upcoming James Bond adventure "Skyfall."
The studio has several other films and television programs in various stages of development including films “Robocop,” “Carrie,” “Poltergeist,” and the current MTV show “Teen Wolf.”