SANTA MONICA, Calif. - Metro-Goldwyn-Mayer Inc., owner of one of the world's largest film libraries, said Monday that its $1.3 billion bank loan has been restructured to make it easier to buy companies and fund additional movies.
Banc of America Securities LLC amended the loan's terms by lifting restrictions related to investments and purchases as well as the financing of films with other companies. MGM said it asked the bank to make the changes.
The increased flexibility reflects MGM's improvement under Alex Yemenidjian, who was named chairman and chief executive in April 1999. After MGM had more than a decade of losses, Mr. Yemenidjian steered it to profitability by slashing costs and working to increase distribution for MGM movies and TV shows through alliances.
The restrictions "were a residue of so many years of difficulty at MGM," said Harold Vogel, chief executive of New York-based Vogel Capital Management and a media analyst. "Now they are ready to move forward and loosen things up."