Metro-Goldwyn-Mayer shops $900 million in term loans

By Sara Rosenberg

New York, June 13 – Metro-Goldwyn-Mayer Inc. is in market with $900 million in term loans, according to a market source.

J.P. Morgan Securities LLC is the left lead on the deal.

The debt consists of a $400 million seven-year first-lien term loan (Ba2) talked at Libor plus 225 basis points to 250 bps with a 0% Libor floor and an original issue discount of 99.5, and a $500 million second-lien term loan (B2) talked at Libor plus 450 bps with a 1% Libor floor and a discount of 99 to 99.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Commitments are due on June 26, the source added.

Proceeds will be used to refinance existing bank debt and for general corporate purposes.

Metro-Goldwyn-Mayer is a Beverly Hills, Calif.-based media company.

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