MGM Sets Terms

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MGM Sets Terms

The senior managing agent round for Metro-Goldwyn-Meyer's massive LBO financing launched Feb. 24.

The senior managing agent round for Metro-Goldwyn-Meyer's massive LBO financing launched Feb. 24. The $4 billion facility is being led by Credit Suisse First Boston and J.P. Morgan and consists of a five-year $250 million revolver, a six-year $1.05 billion term loan and a seven-year $2.7 billion "B" loan. Pricing on the "B" is initially LIBOR plus 2 3/4% and the pro rata is being offered at LIBOR plus 2 1/2%. General syndication is set for March 15. The entertainment company, along with Sony Corporation of America, Providence Equity Partners, Texas Pacific Group, Comcast Corporation and DLJ Merchant Banking Partners agreed in December to a merger between MGM and LOC Acquisition Company, which was formed by the consortium.

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