Source link : https://news7.asia/entertainment/mgm-resorts-raises-debt-sale-to-850m-from-675m/
The global gaming and entertainment company that offers best-in-class hotels and casinos, MGM Resorts International, announced it decided to increase its debt sale from $675 million to $850 million. In a statement on Thursday, the company confirmed that it plans to raise more money through debt than initially expected.
As a result, MGM confirmed it will issue $850 million in aggregate principal amount of 6.125% senior notes due 2029 at par. The new debt through a loan with a 6.125% interest rate is expected to be repaid by 2029 and grant the company access to a sum of nearly $842 million after the applicable expenses.
“MGM Resorts International today announced that it has priced a public offering of $850,000,000 in aggregate principal amount of 6.125% senior notes due 2029 at par. The offering of notes was upsized from the originally announced aggregate principal amount of $675,000,000,“
reads a statement released by MGM Resorts International
Per the company’s latest announcement, the aforementioned transaction is expected to close on September 17, 2024. Not unexpectedly, the transaction is subject to the relevant customary closing conditions, as explained by MGM Resorts.
According to MGM Resorts, the fresh proceeds will be used for several activities. Notably, the company confirmed its intention to use the extra money to pay off existing debt, such as 5.750% senior notes due in 2025, as well as expenses and fees related to transactions.
On the other hand, the remainder of the extra net proceeds are expected to be used for “general corporate purposes.” MGM also added: “Pending such use, the Company may invest the net proceeds in short-term interest-bearing accounts, securities or similar investments.”
The Company Retains Strong Presence in Las Vegas, Macau
In light of MGM’s latest announcement, the recognizable financial research and bond credit rating business, Moody’s, assigned a B1 rating to the company’s senior notes. The financial expert’s B1 rating was the same as MGM’s Corporate Family Rating.
Moody’s explained that there is no change to the Corporate Family Rating considering the gaming and entertainment company’s “large scale, strong presence on the Las Vegas Strip, and a solid position within several regional markets across the US.” The leading rating service also pointed to MGM’s strong footprint in Macau and “favorable long-term prospects” that further underlined its B1 rating.
This summer, MGM uncovered details regarding a joint venture with Grupo Globo that aims at Brazil, one of the most important markets in Latin America. Ultimately, the joint venture will be looking into securing betting and iGaming licenses in the aforementioned country.
Source : GamblingNews
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Author : News7
Publish date : 2024-09-04 15:09:00
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