MGM attempts to exploit its famous name outside movies.

SANTA MONICA - As bankers from around the world ponder about whether to invest in the new Metro-Goldwyn-Mayer Inc., executives with the soon-to-be-sold film studio are trying to boost profits by taking advantage of its famous name and logo.

Frank Mancuso's first goal when he took over as MGM chairman and CEO in 1993 was to breathe some life into the studio's then-moribund film and TV production business, explained MGM spokeswoman Anne Corley.

Now, Mancuso, who put together the investment group that is buying the studio from French bank Credit Lyonnais for $1.3 billion, is concentrating on exploiting the MGM name in areas outside the movie business.

On Aug. 22, MGM announced its first-ever venture into live entertainment, a partnership with Ice Capades Inc. for a two-hour touring ice show called "The Magic of MGM" that will feature such well-known MGM characters as James Bond and the Pink Panther.

And earlier last month, MGM broke new ground in the multimedia business by becoming the first studio to bundle home videos with CD-ROM games based on the same film.

Specifically, MGM bundled CD-ROM games and home videos of its Bond film "Goldeneye" and its children's movie "Chitty Chitty Bang Bang."

Corley said MGM will take further steps into non-film-related businesses, possibly including location-based entertainment and theme parks, in the near future.

"We definitely consider (the ice show) to be a first move and not an only move," she said. "We think this will get the ball rolling for other projects, as part of a much broader strategy to further utilize and exploit the MGM brand."

Arthur Rockwell, research director at Los Angeles-based Yaeger Capital Markets, said the move is long overdue.

"Even with all the turmoil and chaos, (MGM has) one of the world's great logos. But they've done absolutely nothing with it," Rockwell said. "It's an incredible logo. It is, with the possible exception of Disney, the most famous logo out there."

French bank Credit Lyonnais, which foreclosed on MGM's former owner Giancarlo Parretti in 1992, agreed to sell the studio in mid-July to a group of investors led by financier Kirk Kerkorian. The $1.3 billion deal is expected to close in October.

Meanwhile, the new ownership group is working to obtain bank loans to complete the purchase. Kerkorian is reportedly paying $700 million of the total price, while Australian broadcasting company Seven Network Ltd. is kicking in $250 million. That leaves $450 million in loans to be raised by New York investment bank J.P. Morgan Securities Inc. to complete the transaction, and untold millions more to fund next year's slate of motion pictures.

Bank representatives gathered last month at MGM's offices for a presentation by company officials. MGM has never publicly disclosed how much it is seeking in loans to pay production and marketing costs, although the trade magazine Hollywood Reporter recently pegged the sum at $350 million.

Financial analysts, though, said that probably won't be enough to get the job done.

"When you consider the average movie costs about $35 million to produce, and a big event picture typically costs around $100 million, $350 million doesn't go that far," said attorney Anthony Adler, a partner and film finance expert at West L.A. law firm Mitchell, Silberberg & Knupp. "It's a lot of money, but it's not really a lot of money when it comes to making movies."

Mancuso promises the company will have enough money to finance its 1997 film slate. The studio plans to produce between 12 and 15 of its own films and acquire three or four more for distribution next year, according to Corley.

When Mancuso and his management team took over MGM in 1993, the studio ranked 11th in market share among motion picture distributors. From a 1.86 percent share in 1993, MGM is currently running in seventh place with a 7.14 percent share, according to Tom Borys, a senior vice president with Beverly Hills-based Entertainment Data Inc.

Nonetheless, MGM films have been somewhat disappointing so far this year. With the exception of "The Birdcage" starring Robin Williams, which grossed $124 million at the box office, nearly all of MGM's 11 releases so far in 1996 have fallen flat - including such disappointments as "Mulholland Falls," "Fled" and the forgettable "Unforgettable."

Those failures might give pause to some of the bankers looking to back MGM, although, as Adler pointed out, there are many lenders anxious to get into the entertainment business because film loans typically carry very high interest charges and are, therefore, highly profitable.

Many entertainment industry analysts said they believe the new ownership group will succeed in obtaining ample financing, especially because of Kerkorian's backing.

"It's not going to be easy, but I think they'll pull it off," said Rockwell of Yaeger Capital Markets.