MGM characterizes its new, five-year $1 billion revolving credit facility as a vote of confidence by J.P. Morgan Chase, and other banks in the lending syndicate.

“The size and structure of this new facility are indicative of MGM’s strong financial position and bright future, and will provide us with the financial flexibility to continue executing on our strategic growth initiatives,” CEO Gary Barber says.

The new arrangement replaces MGM’s existing $665 million revolving credit facility and takes advantage of today’s low interest rates. The studio agreed to pay the London Interbank Offered Rate (known as LIBOR) that banks charge each other for short term loans plus 2.25%.

MGM also prepaid a $300 million second lien term loan, which could save $50 million over its remaining term.

J.P. Morgan Chase’s David Shaheen, who’s Managing Director of the Entertainment Industries Group, says that MGM has “established a tremendous track record of disciplined growth and success.” The additional cash will “support their business initiatives and the additional strategic opportunities ahead of them.”

In March, MGM added $300 million to its stock repurchase plan after reporting strong financial results for 2015 helped by movies including Spectre and TV shows such as Teen Wolf, Vikings and Fargo.