Stay informed with the
NEW Casino City Times newsletter!
MGM hopes to raise over $500 million through stock sale13 October 2010
By Howard Stutz
In a filing with the Securities and Exchange Commission, the casino operator said it priced the 40.9 million shares it has released to the open market at $12.65 per share on the New York Stock Exchange.
Shares of MGM Resorts opened down more than 9 percent this morning in early trading.
Los Angeles billionaire Kirk Kerkorian, the company's founder and largest shareholder, is placing almost 28 million shares of MGM Resorts that he owns through Tracinda, his private investment arm, on the open market.
Tracinda currently holds more than 163 million shares of MGM Resorts, or 37 percent of the company's outstanding shares.
Kerkorian could raise more than $351.4 million through the proposed sale.
Barclays Capital Inc. is the sole underwriter of the transaction that is expected to close on Monday.
MGM Resorts and Tracinda granted the underwriter a 30-day option to purchase up to an additional 6,135,000 shares and 4,167,300 shares, respectively, to cover over-allotments, if any.
The company plans to use the net proceeds from the sale toward repayment of the company's $13 billion in long term debt. MGM Resorts International will not receive any proceeds from the sale of Kerkorian's stock.
Copyright GamingWire. All rights reserved.