MGM Resorts International, the parent company of Macau-based MGM China Holdings, announced on Thursday that it would price a total of $1.15 billion in public offerings with 6% principal unsecured bonds due in 2023. The transaction is expected to be completed on November 25, the company said in a statement.
The company said it plans to use net proceeds for general corporate purposes, such as repaying certain debts maturing in 2015 and funding some of the development costs related to Maryland and Massachusetts resort projects.
MGM is already working on plans to pay an $85 million license fee to Massachusetts to build an $800 million casino project in Springfield (pictured in rendering).
“Withholding these uses allows the company to invest its net proceeds in accounts, securities or similar investments with short-term interest,” MGM Resorts said.
Fitch Ratings said it sees the issue as positive. “We significantly meet MGM’s liquidity needs through the development phase of our company’s projects in Macau ($2.9 billion), Maryland ($1.2 billion), and Massachusetts ($800 million),” the rating agency said in a statement.
“If MGM uses the proceeds to refinance US$875 million in 6.625% senior bonds due in July 2015, the issuance will be mostly neutral,” it added.
On Thursday, casino operator Wynn Resorts Ltd, which entered Macau through Wynn Macau, also announced a new credit deal.
The Credit Agreement comprises a senior secured revolving credit facility of US$375 million due on November 20, 2019 and a US$875 million delayed withdrawal senior secured term loan facility that requires quarterly principal repayments due on November 20, 2020 and will commence on June 30, 2018. 프라그마틱 슬롯 사이트
Win America LLC, a subsidiary of Win Resorts, will use the proceeds from its credit facility primarily to spend capital on the construction of a $1.6 billion casino resort in Everett, Massachusetts.
Wynn Resorts said in a filing with the Securities and Exchange Commission that the proceeds will also be used for other general corporate purposes, including working capital, capital expenditure and allowed underwriting funds.