MGM Resorts closes bond offering, receives $985.8 million in proceeds


MGM Resorts International said it received approximately $985.8 million in net proceeds from a $1 billion bond offering announced last week.

In a statement Wednesday, the casino operator said the notes had an interest rate of 6.75 percent and are due in 2020.

MGM Resorts said it will use the proceeds to repay a portion of its $13.4 billion in long-term debt.

"Strong investor demand allowed us to upsize this transaction to $1 billion at a rate of 6.75 percent, a coupon we have not achieved since early 2006," MGM Resorts Chief Financial Officer Dan D'Arrigo said in a statement. "This transaction is another step in our plan to extend maturities and reduce borrowing costs to improve our free cash flow."

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.

 

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