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MGM to Raise Money for Debt Repayment

September 12, 1997|Bloomberg News

Metro-Goldwyn-Mayer Inc. said it expects to raise $232.5 million for debt repayment after expenses in its planned initial public offering, filed Thursday with the Securities and Exchange Commission. The IPO is part of the studio's plan to raise money for debt repayment. The investor group, led by Kirk Kerkorian's Tracinda Corp., will retain a controlling stake in the Santa Monica company after the IPO. Tracinda currently owns 68.96% while Seven Network Ltd., an Australian television station operator led by Kerry Stokes, holds 30.76%. MGM had $796 million of outstanding debt as of June 30, including all the debt incurred in the acquisition of Orion Pictures Corp., the filing said. The movie maker hasn't made a profit in any year since 1988 and ran up operating losses of $360.8 million from 1994 to Oct. 10, 1996, according to the filing.

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