MGM Resorts International has raised $750 million in new debt to shore up its balance shut during the nationwide casino shutdown.
The transaction, expected to close this week, was hailed by Jefferies gaming analyst David Katz, who said it “makes a strong financial position stronger.”
“Taken in total, we believe the update supports our positive view, which is MGM can endure until recovery is clearer,” he wrote in a note to investors.
The Las Vegas-based company has furloughed 60,000 of its 69,000-person U.S. workforce and is spending $270 million a month to maintain its two dozen gaming and non-gaming properties in six states. This is not including its two Macau resorts, which are operated by a separate Hong Kong-listed company in which MGM holds a majority share.
In a filing with the Securities and Exchange Commission, the company said it currently has $6 billion in cash on its balance sheet, which includes more than $3.6 billion in recent drawdowns. The company said none of its current $11.8 billion of long-term debt comes due until 2022. The $750 million in new debt would come due in 2025.
