MGM looks at the debt picture

Exploring its options: MGM is looking for ways to deal with the studio's £2bn of debt

11 April 2012

Hollywood studio MGM says it is exploring "enhancements" to its long-term capital structure that could include a stock offering or debt refinancing, but does not plan to put the company on the market.

The movie business has become the latest casualty of the credit crunch and is struggling to raise funds to make films. MGM has retained Goldman Sachs to explore options for dealing with its $3.7 billion (£2 billion) of debt.

Jeff Pryor, a spokesman for the studio, said that an initial public offering of stock is one of several alternatives MGM is considering.

"We don't know right now because that's what Goldman is doing," Pryor said. "They haven't given us alternatives yet."

The comments came amid reports that MGM had hired Goldman Sachs to look into a possible sale.

However, Pryor said it had enough financing to meet its needs and that its privateequity owners were pleased with the company's momentum.