Metro-Goldwyn-Mayer Inc. Tuesday proposed a public stock offering as part its new owners plan to extend MGMs legacy as one of Hollywoods oldest and most enduring film studios.
MGM did not disclose the number of shares it plans to offer, nor did it name an underwriter. But it said it expects to register for the sale with the U.S. Securities and Exchange Commission as soon as possible.
Details will become public when the filing is made. An MGM spokesman declined to comment beyond the press release.
MGM, formed in 1924, has produced classic movies such as Gone With the Wind and The Wizard of Oz. Recent hits include The Birdcage and James Bond thriller Goldeneye.
In the early 1990s, the studio fell on hard times under the ownership of high-flying Italian financier Giancarlo Parretti and was eventually taken over by French bank Credit Lyonnais
Last October, a partnership between billionaire investorKirk Kerkorians Tracinda Corp. and Australian media conglomerate Seven Network Ltd acquired MGM for $1.3 billion.
In early July of this year, the new owners completed a $573 million acquisition of Orion Corp. and Goldwyn Entertainment Co., adding to MGMs large film library and its slate of movies in production.
Sources close to the company said MGM, which is led by Chairman and Chief Executive Officer Frank Mancuso, is looking to raise about $250 million, or about 12.5 percent of the companys total equity.
Funds would be used for film and television production and to help support operations of other company divisions, but would not be used to pay down debt incurred in the acquisition, sources said.
J.P. Morgan & Co. and Merrill Lynch & Co. are expected to be named as underwriters when MGM files with the SEC. MGM said all the shares issued would be new shares, and funds would be used for general corporate purposes.
