MGM nets $486 million from bond offering
MGM Resorts International received $486 million in net proceeds from a bond offering which the company will use toward loans that are due next year.
In a statement, the Strip casino operator said it would combine the proceeds from the bond sale with proceeds from the company's $511 million stock sale to retire $1.2 billion in commitments under its senior credit facility, which are scheduled to mature in October 2011.
Payment on the notes the company sold are due in 2016.
MGM Resorts said it notified lenders under its senior credit facility of the planned repayment, which would extend revolving commitments of approximately $3.6 billion to February 2014.
The notes will be general unsecured senior obligations MGM Resorts, guaranteed by substantially all of the company's wholly-owned American subsidiaries, which also guarantee the company's other senior indebtedness.
MGM Resorts has undertaken efforts to address the company's liquidity issues. The company has about $13 billion in long term debt.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
