MGM Resorts International finalized its previously announced $750 million debt offering Tuesday, which will be used for “general corporate purposes,” which could include refinancing existing debt or investing in short-term interest-bearing accounts or securities.
The company, which has $11.4 billion in total debt as of the end of June, said the new debt will come due in 2028. The casino operator initially planned to raise $500 million in new debt but increased the by $250 million due to interest.
“The successful execution of this upsized offering at a favorable rate further solidifies our financial flexibility and demonstrates the continued confidence our investors have in our long-term business outlook,” MGM Resorts CFO Corey Sanders said in a statement.
MGM’s total debt includes $3.7 billion associated with its ownership of real estate investment trust MGM Growth Partners and $2.5 billion with its Macau operating subsidiary, MGM China.
MGM Resorts has reopened all its nationwide properties that were closed starting in mid-March due to the coronavirus pandemic. The casinos in six states are operating under mandated COVID-19 health, safety, and cleaning guidelines. Park MGM in Las Vegas reopened as a non-smoking resort.
In August, investment giant IAC/InterActiveCorp acquired a 12% stake in MGM Resorts, while IAC Chairman and Senior Executive Barry Diller and CEO Joey Levin were added to the company’s board.
The investment was viewed as a way to boost MGM’s digital gaming presence.
MGM and United Kingdom-based GVC Holdings have a 50-50 partner in the operating parent of U.S. sports betting operator BetMGM.
BetMGM, which is live in eight states, expects to be online in three more states by the end of the year and in a total of 20 states by the end of 2021. BetMGM launched online sportsbooks in Indiana, Colorado, and West Virginia this year, where it has a combined 15% to 20% market share and added igaming to its West Virginia business last month.
Shares of MGM Resorts closed Tuesday at $20.97 on the New York Stock Exchange, down 43 cents or 2.01%.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
