MGM Resort Demonstrates Commitment To Improve Debt Maturity Profile By Issuing $1bn

Demonstrating a strong commitment to making significant improvements regarding the debt maturity profile, MGM Resorts announced the completion of the issuance of $1bn in the aggregate principal amount of 5.500% senior notes due 2027 (the “2027 Notes”) …

…which were issued at par. The board told the investors about the intentions to use the net proceeds from the notes to fund the purchase of up to $1bn aggregate principal sum of its outstanding 6.750% senior notes due 2020 and 5.250% senior notes also due the same year.

The Remaining Amounts to be Used Wisely

All the amounts to be generated from proceeds are planned for funding general corporate purposes of various kinds. This will include the refinance of the existing indebtedness. Besides, it will serve to pay dividends on common stock or repurchasing common stock, as per the Company’s share repurchase program. Pending such use, the corporation, which recently teamed up with Orix Corp…

…may invest the net proceeds in short-term interest-bearing s, securities, and similar projects. The Tender Offers were subject to a financing condition, which was satisfied upon closing the offer. Just to remind you, this brand is among the loudest one which promotes responsible gambling, which may imply that some amount could serve for such purposes. But, it’s just assumptions.

MGM Has No Time to Sleep

Such a grandiose brand certainly has little time to rest, as there are major changes taking place almost every day. Some of the most prominent events that marked the recent period have to do with significant partnerships. One of those was inking a deal with the Boston Red Sox, with the resort becoming…

…their official gaming partner. Shortly after, they signed another multi-year agreement of high importance. This time with Macau license extension.

For Stronger Balance Sheet

As Chief Financial Officer and Treasurer of MGM, Corey Sanders, sees things, this significant financial moment will inevitably decrease the debt cost. Pointing out the huge importance of from the investment community, she comments on the occasion as follows:

“This transaction demonstrates our continued commitment to strengthening our balance sheet and improving our debt maturity profile. We are pleased with the continued from the investment community, which allowed us to upsize the transaction to $1bn and further reduce our cost of debt.”

Source:

“MGM Resorts to refinance debt with $1bn notes offer”, casinobeats.com, April 12, 2019.