Metro-Goldwyn-Mayer Parent Plans IPO [Report]

Metro-Goldwyn-Mayer‘s parent company is reportedly planning an initial public offering after hiring JPMorgan Chase Co. and Goldman Sachs Group Inc., according to two people familiar with the situation.

The share sale will be led by JPMorgan, according to sources who asked not to be identified. A press release dated Tuesday stated that MGM submitted a draft statement for IPO registration to the U.S. Securities and Exchange Commission, but declined to disclose details of the offering, reports Bloomberg Business Week.

An IPO for MGM would help raise money to make more films, which would be good for the film company, since it filed for bankruptcy in 2010, emerging two months later. The studio currently holds the rights to The Hobbit by J.R.R. Tolkien, and also to the James Bond Movies. They are currently working through other studios to release their pictures.

Warner Bros. is working with Metro-Goldwyn-Mayer to produce The Hobbit, and Sony Corp. released the most recent James Bond movie, Quantum of Solace.

According to The San Francisco Chronicle, MGM was able to obtain a $500 million revolving credit facility in February, which is used to pay off debt, as well as invest in its film and television business. JPMorgan chase and Deutsche Bank were the main financers for the credit facility.

Metro-Goldwyn-Mayer is considering an initial public offering at the same time the U.S. IPO market will see its busiest week since April. Along with MGM, Del Frisco’s Restaurant Group Inc. is also attempting to make money from the IPO market, with Del Frisco’s goal set at $824 million total.