MGM Raises $1.15 Billion for New Developments

Sat, Nov 29, 2014

In a move applauded by some analysts, MGM Resorts International has raised $1.15 billion of new debt that will come due in 2023. Most of the funds will be used to develop new casino projects in Massachusetts and Maryland (l.). A portion of the rest will pay down existing debt.

Big developments in U.S., Macau

MGM Resorts International has raised $1.15 billion of new debt to fund key resort developments in Massachusetts and Maryland, according to a report in the Las Vegas Review-Journal. Some of the funds will also be earmarked to pay down debt that will come due next year.

MGM Resorts already has $11.7 billion in long-term debt. The company said the new debt would come due in 2023.

MGM Resorts Chief Financial Officer Dan D’Arrigo said the debt was issued at “historically” low interest levels of 6 percent.

“We remain committed to maximizing our free cash flow by making strategic investments in our resort portfolio and opportunistically accessing the capital markets at attractive rates,” D’Arrigo said.

Both Moody’s and Fitch Ratings gave a thumbs-up to the transaction, the Review-Journal reported.

The company is developing the $800 million MGM Springfield in Massachusetts and the $1.2 billion MGM National Harbor in Maryland. The company is also building a $2.9 billion hotel-casino on the Cotai Strip in Macau.

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