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MGM Resorts raises $1.15 billion of new debt

MGM Resorts International said Tuesday it completed transactions that raised $1.15 billion of new debt.

The casino operator said the funds will be used primarily for development costs surrounding the company’s casino projects in Massachusetts and Maryland.

MGM Resorts already carries $11.7 billion in long-term debt. The company said the new debt would come due in 2023. A portion of the proceeds from the sale would be used to pay down debt due in 2015.

In a statement, the company said the debt would have an interest rate of 6 percent.

MGM Resorts Chief Financial Officer Dan D’Arrigo said said the debt was issued at “historically” low levels.

“We remain committed to maximizing our free cash flow by making strategic investments in our resort portfolio and opportunistically accessing the capital markets at attractive rates,” D’Arrigo said.

Two high yield bond ratings services, Moody’s and Fitch, said last week it had positive views of the MGM Resorts transaction.

The company is developing the $800 million MGM Springfield in Massachusetts and the $1.2 billion MGM National Harbor in Maryland. Also, the company is building a $2.9 billion hotel-casino on the Cotai Strip region of Macau.

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

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