MGM Debt Holds As Sony Steps In

Metro-Goldwyn-Mayer's $1.6 billion "B" loan stayed in the 100-100 1/4 range and traded around that context after the company announced its acquisition by a consortium of investors led by Sony Corp.

  • 17 Sep 2004
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Metro-Goldwyn-Mayer's $1.6 billion "B" loan stayed in the 100-100 1/4 range and traded around that context after the company announced its acquisition by a consortium of investors led by Sony Corp. Providence Equity Partners, Texas Pacific Group and DLJ Merchant Banking Partners joined Sony in the purchase of the film studio for approximately $3 billion in cash. The group also assumed reportedly MGM's $1.9 billion in debt. "The market anticipated the deal," a trader said.

Regardless of the size of the acquisition, the debt did not move up. "The debt has call protection, it's going to be taken out at par," a trader said. Joe Fitzgerald, v.p. of investor relations and corporate communications did not return calls.

MGM's "B" piece is priced at LIBOR plus 2 1/2%. The company's "B" loan is part of a $2.4 billion financing led by Bank of America. The facility also includes a $400 million revolver and a $400 million "A" loan.

  • 17 Sep 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 6,665 23 13.02
2 Citi 5,781 17 11.29
3 BNP Paribas 3,530 14 6.89
4 Barclays 2,853 9 5.57
5 Credit Suisse 2,783 8 5.44

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 99,251.11 279 13.15%
2 Bank of America Merrill Lynch 90,895.27 265 12.04%
3 Wells Fargo Securities 72,661.39 222 9.63%
4 JPMorgan 52,367.24 169 6.94%
5 Credit Suisse 41,885.89 127 5.55%