MBC Group signs 4 amendment deals for subsidiaries' expansion projects

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MBC Group ssigned today, Oct. 29, an amendment agreement with its wholly-owned subsidiary, MBC Studios Projects Free Zone LLC, along with Sustainability Holding and MBC Group Holding Ltd (Virgin Islands), to adjust a May 16, 2023 project financing deal. This modification addresses financing costs for high-quality TV series and films as outlined in the company prospectus.

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According to MBC's Tadawul filing, the contracting entities are Sustainability Holding (as government representative and financier), MBC Studios Projects Free Zone LLC (as funding recipient), and MBC Group Holding (Virgin Islands) (as previous holding company).

The uncommitted allocation under the agreement amounts to $725 million (SAR 2.72 billion), reallocated for production financing purposes. The amendment shifts the guarantor role to MBC Group from MBC Group Holding (Virgin Islands) following restructuring, as indicated in the prospectus.

MBC confirmed that the contract term remains in line with the project agreement, ending on Dec. 31, 2025, and noted no material financial impact.

In a separate filing, MBC signed another amendment with MBC Media Free Zone LLC, Sustainability Holding, and MBC Group Holding (Virgin Islands), to modify a project agreement from May 16, 2023, relating to funding operational costs of select group TV channels.

Contracting parties for this amendment include Sustainability Holding (as financier), MBC Media Free Zone LLC (as recipient), and MBC Group Holding (Virgin Islands) (as prior holding entity). The agreement reallocates $390.22 million (SAR 1.46 billion) in uncommitted funds, with the contract duration extended to Dec. 31, 2028, and no material financial effect reported.

The amendment also makes MBC Group the new guarantor for MBC Media’s obligations, replacing MBC Group Holding (Virgin Islands), now the group’s new holding company, per the prospectus.

Additionally, MBC signed a further amendment with MBC Initiatives, Sustainability Holding, and MBC Group Holding (Virgin Islands) to adjust a June 20, 2021 project deal, last modified on Aug. 4, 2022. The agreement concerns funding for talent and studio development under MBC Academy, as disclosed in the prospectus.

The agreement lists Sustainability Holding (as financier), MBC Initiatives (as recipient), and MBC Group Holding (Virgin Islands) (as prior holding entity). This project has $318.53 million (SAR 1.19 billion) allocated in uncommitted funds, with a contract term through Dec. 31, 2025, and no significant financial impact.

The amendment designates MBC Group as the guarantor for MBC Initiatives’ obligations instead of MBC Group Holding (Virgin Islands), in alignment with restructuring outlined in the prospectus.

Further, MBC entered another amendment with MBC Saudi Media, Sustainability Holding, and MBC Group Holding (Virgin Islands) to adjust a May 16, 2023 project deal to fund headquarters relocation and production facilities in Riyadh, Saudi Arabia, as disclosed in the prospectus.

MBC detailed that the parties involved include Sustainability Holding (as financier), MBC Saudi Media (as recipient), and MBC Group Holding (Virgin Islands) (as previous holding entity). The project’s uncommitted allocation totals $507.87 million (SAR 1.90 billion), with $77.65 million (SAR 291.17 million) earmarked to establish central studios in Al-Narjis district and an uplink and control center in Riyadh.

The amendment makes MBC Group the guarantor for MBC Saudi Media’s commitments, replacing MBC Group Holding (Virgin Islands). The contract period aligns with the project agreement, set to end Dec. 31, 2026, with no significant financial impact expected.

Sustainability Holding is a related party, being a major shareholder. Deputy Chairman Hendi Al-Suhaimi holds an indirect interest as Chairman of Sustainability Holding. MBC stated the amendments were executed within regular business practices without preferential treatment.