Las Vegas-based casino operator MGM offers $750m in senior notes

Posted:: Mar 26, 2021 13:30 Category: Americas , Casino , Land-Based , Posted by Maria

With the COVID-19 having “a significant impact on the business, results of operations and financial condition,” MGM Resorts is offering $750 million worth of senior notes due 2028

In an investor update today, MGM Resorts International announced that it had successfully completed the issuance of senior notes to the amount of $750 million due 2028 and priced at 4.75% annually.

This issuance had been announced in April due to the uncertainty the pandemic brought about. With state authorities forced to shut down casino properties in the start of the pandemic, in late April, MGM issued another $750 million public offering of senior notes to improve its liquidity.

In a Thursday filing with the U.S. Securities and Exchange Commission, MGM, the operator said: “During this time, we have remained committed to managing our expenses to maintain our robust liquidity position.”

MGM ResortsIn the SEC filing the company also stated that the “aggressive” cost-cutting measures could negatively affect guest loyalty and the company’s ability to attract and retain employees.

MGM Resorts reopened its properties on September 30th. All the properties are functioning with limited capacity and with imposed distancing measures and sometimes the operator still feels uncertain if they will be asked to shutter its doors once more.

As of the end of June, MGM had a total debt of $11.4 billion.

During the time of closure, the estimated cash spending was calculated to be roughly $270 million per month. These expenses include corporate and operating expenditures, net rent, interest and capital expenditure.

About SiGMA Magazine:

SiGMA Magazine is the ultimate biannual publication shedding light on the gaming industry. The magazine covers five major continents, namely: Europe, Asia, Africa, and the Americas with contributors reigning from all over the world. The publication is distributed to a global audience, with a print run of 10,000, giving readers exclusive content about our vast client base. Due to our global audience SiGMA utilises its in-house translators to translate content in their specific language, depending on the continent. The Magazine is available online via our digital version and is also distributed during SiGMA’s annual shows. If you want to be part of our next issue please contact Katy.

Related Posts

iTech Labs scores high on…

iTech Labs identifies four main areas that they’ve found are important to customers in a test lab provider: Quality of…