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MGM Resorts raises more than $8 billion, completes "landmark refinancing"21 December 2012
By Howard Stutz
In a statement Thursday the company, which operates 10 Strip resorts, including Bellagio, MGM Grand, Mandalay Bay, The Mirage and the CityCenter complex, completed what it termed a "landmark refinancing."
MGM Resorts, which has more than $13 billion in long-term debt, said it entered into a $4 billion amended credit agreement, issued $1.25 billion in new debt and retired older debt.
"This transformational transaction has been executed earlier than original expectations and at extremely attractive rates," MGM Resorts Chairman Jim Murren said in a statement. "With a significantly stronger capital structure now in place, our focus remains on continuing to maximize free cash flow, de-levering our balance sheet, and positioning our Company to execute on growth and development initiatives."
MGM Resorts Chief Financial Officer Dan D'Arrigo said the company would save approximately $230 million annually in reduced interest expense from the refinancing.
He said the refinancing was accomplished at interest rates "significantly lower than recent years."
MGM Resorts has been seeking expansion opportunities in Maryland, Massachusetts and Toronto.
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