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