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

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4 Goldman Sachs 2,615 4 6.46
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1 Bank of America Merrill Lynch 57,945.74 181 12.35%
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