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MGM offers $750m in unsecured notes to help refinance debts


Land-based giant MGM Resorts will offer $750m in unsecured senior notes to be repaid in 2028 to help it refinance its existing debts.

The operator announced a $500m notes offering yesterday (8 October), before today announcing the offering had been upsized to $750m.

The interest rate on the notes, which cannot be transferred, will be 4.75%.

BofA Securities, J.P. Morgan Securities, Barclays Capital, Citigroup Global Markets, BNP Paribas Securities, Citizens Capital Markets., Fifth Third Securities, Scotia Capital (USA) and SMBC Nikko Securities America will all jointly act as book-running managers for the offering.

The operator said it intends to use the proceeds from the offering “for general corporate purposes, which could include refinancing existing indebtedness”.

“Pending such use, the company may invest the net proceeds in short-term interest-bearing accounts, securities or similar investments,” it added.

For the first half of 2020, MGM reported net revenue of $2.54bn, down 60.3% year-on-year, and a net loss of $50.4m.

This would have been much higher if not for the operator’s decision to sell the MGM Grand and Mandalay Bay properties as part of its move towards a more asset-light profile, which resulted in $1.49bn in additional income.